/raid1/www/Hosts/bankrupt/TCR_Public/170907.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Thursday, September 7, 2017, Vol. 21, No. 249
Headlines
1325 VIRGINIA: Case Summary & 2 Unsecured Creditors
1776 AMERICAN: Hernandez Buying Houston Property for $138K
1776 AMERICAN: Selling The Woodlands Property for $212K
21ST CENTURY ONCOLOGY: Sues US Cancer Care for Misrepresentation
A&D PROPANE: Sale Talks, Hurricane Harvey Delay Plan Filing
AEOLUS PHARMACEUTICALS: Incurs $949,000 Net Loss in Third Quarter
ALGODON WINES: Incurs $1.97 Million Net Loss for Second Quarter
AMERICAN TANK: Case Summary & 20 Largest Unsecured Creditors
AMPLIPHI BIOSCIENCES: Reports $6.46M Net Loss for Second Quarter
ANGELICA CORP: Court Confirms 3rd Amended Plan
APOLLO ENDOSURGERY: Novo Holdings Owns 6.3% of Class A Shares
AVANTOR INC: Fitch Assigns First Time 'B' IDR; Outlook Stable
AVANTOR INC: Moody's Lowers CFR to B3; Outlook Negative
AVANTOR INC: S&P Alters Outlook to Stable & Affirms 'B' CCR
B N EMPIRE: Case Summary & 4 Unsecured Creditors
BARMER ENTERPRISES: Wants Plan Filing Deadline Moved to Jan. 15
BIOLARGO INC: Incurs $2.51 Million Net Loss in Second Quarter
BIOSTAGE INC: Reports $3.6 Million Net Loss for Second Quarter
BLACK MOUNTAIN GOLF: Liberty Village Balks at Plan Filing Delay
BROCK HOLDINGS III: Moody's Cuts CFR to Caa2; Outlook Still Neg.
CAESARS ENTERTAINMENT: Obtains $2.2 Billion Committed Financing
CAMPBELLTON-GRACEVILLE: Wants Dec. 31 Deadline to File Exit Plan
CHICAGO EDUCATION BOARD: Moody's Confirms B3 GO Debt Rating
CHICAGO, IL: Moody's Confirms Ba1 GO Rating; Outlook Negative
CHIEFTAIN SAND: Plan Exclusivity Period Extended Through Nov. 6
CHS/COMMUNITY HEALTH: Moody's Lowers CFR to B3; Outlook Stable
DIGICERT PARENT: S&P Assigns B Corp Credit Rating, Outlook Stable
DOAKES ENTERPRISES: Taps Michael J. Rose as Legal Counsel
DOTS LLC: Asks Court to Dismiss Chapter 11 Case
E. MENDOZA & CO: Wants to File Reorganization Plan by October 12
EXTREME REACH: S&P Cuts CCR to 'B-' on Narrow Margin of Compliance
FOUNDATION HEALTHCARE: US Trustee Objects to 1st Amended Plan
GCA SERVICES: S&P Affirms Then Withdraws 'B' Corp Credit Rating
GENTLEPRO HOME: May Use Can Capital's Cash Collateral Until Nov. 16
GENTLEPRO HOME: May Use IRS's Cash Collateral Until Nov. 16
GREATER GOOD HOPE: Taps Kaplan & Partners as Legal Counsel
HARD ROCK EXPLORATION: Case Summary & Top Unsecured Creditors
HD SUPPLY: S&P Gives 'BB+' Ratings on B-3 and B-3 Term Loans
HUMANIGEN INC: CEO Cameron Durrant Named Interim CFO
IMH FINANCIAL: Incurs $4.32 Million Net loss in Second Quarter
INTERLEUKIN GENETICS: Suspends Filing of Reports with SEC
JHL INDUSTRIAL: Has Court's Nod to Use Cash Collateral
KIWA BIO-TECH: Posts $5.01 Million Net Income in 2nd Quarter
LAGO RESORT: S&P Lowers CCR to 'CCC+', On CreditWatch Negative
LANDRY'S INC: S&P Affirms 'B' CCR on Consolidation of Operations
LEHMAN BROTHERS UK: Taps Epiq as Administrative Agent
LEHMAN BROTHERS UK: Taps Weil Gotshal as Legal Counsel
LEVERETTE TILE: Case Summary & 20 Largest Unsecured Creditors
LYONDELL CHEMICAL: Judge Dismisses Creditors' $5.9B Clawback Suit
MARINA BIOTECH: Incurs $1.17 Million Net Loss in Second Quarter
MERRIMACK PHARMACEUTICALS: 9 Directors Elected by Stockholders
MERRIMACK PHARMACEUTICALS: Appoints New Chief Financial Officer
MICHELE MAYER: $85K Sale of Property to Home Helpers Approved
MICHELE MAYER: $92.5K Sale of Ivanhoe Property to Hernandez Okayed
MICHELE MAYER: $93K Sale of Property to DVP Approved
MILNER DISTRIBUTION: Case Summary & 20 Largest Unsecured Creditors
NATIONAL EVENTS: Ch. 7 Trustee May Obtain Records From 7 Banks
OM SHANTI: Case Summary & 2 Unsecured Creditors
ONE57 79: Taps Lewis & Thomas as Legal Counsel
OPTIMA SPECIALTY: Plan Deal with Sponsor Terminated; Talks Ongoing
OPTIMUMBANK HOLDINGS: Reports $168,000 Net Loss for 2nd Quarter
ORIGINAL THAI: Case Summary & 3 Unsecured Creditors
OVADA MORERO: Auction of Yuma Property to Pay Creditors Approved
OXFORD ASSOCIATES: Voluntary Chapter 11 Case Summary
PACIFIC DRILLING: Announces Potential NYSE Delisting Events
PACKARD SQUARE: Case Summary & 20 Largest Unsecured Creditors
PARETEUM CORP: Incurs $1.34 Million Net Loss in Second Quarter
PHYSICAL PROPERTY: Incurs HK$169,000 Net Loss in Second Quarter
POINTE PROPERTIES: Case Summary & 20 Largest Unsecured Creditors
PORTRAIT INNOVATIONS: Seeks to Assume Plan Deal with Noteholders
POST EAST: May Use Cash Collateral Until Oct. 31
PRESSURE BIOSCIENCES: Reports $584K Net Loss for 2nd Quarter
QUALITY CONSERVATION: Intends to File Chapter 11 Plan by Oct. 29
RANGER FABRICATION: Wants to Move Plan Filing Deadline to Dec. 28
REBECCA & JESSICA: Taps Alla Kachan as Legal Counsel
RECESS HOLDINGS: S&P Assigns B Corp Credit Rating, Outlook Stable
RJR TOWING: Seeks Nov. 26 Exclusive Plan Filing Period Extension
RMA STRATEGIC: Involuntary Chapter 11 Case Summary
ROOSTER ENERGY: Wants Plan Filing Deadline Moved to Dec. 29
ROSETTA GENOMICS: Will Hold Extraordinary Meeting on Sept. 18
ROYAL HOLDINGS: S&P Places B' CCR on CreditWatch Positive
SENIOR CARE GROUP: U.S. Trustee Appoints Mary L. Peebles as PCO
SLUSS & RAY: Needs More Time to Complete Asset Sale, File Plan
SMITH FARM: Taps David Kruer as Legal Counsel
SPANISH BROADCASTING: Posts $2.56 Million Q2 Net Income
STEMTECH INT'L: Exclusive Plan Filing Deadline Moved to Oct. 16
TAKATA CORP: Honda Reaches $605M Settlement in Inflator Suit
TELEFLEX INC: Moody's Affirms Ba2 CFR on NeoTract Acquisition
TELEFLEX INC: S&P Alters Outlook to Neg. on Rising Debt Leverage
TEMPLE OF HOPE: Has Final Approval to Use of Cash Collateral
TRANSACTION NETWORK: Moody's Retains B2 CFR Amid $150MM Loan Add-on
UNITED CHARTER: Retention of Ten-X to Auction Stockton Property OKd
VALERIY ROMANCHENKO: Declares Sale of Nevada Properties for $617K
VERACRUZ INVESTMENTS: Case Summary & 7 Unsecured Creditors
VIASAT INC: Moody's Rates New $600MM Senior Unsecured Notes B3
VIASAT INC: S&P Rates New $600MM Sr. Unsecured Notes 'BB-'
VIRGIN ISLANDS PFA: S&P Puts 'CCC+' Bonds Rating on Watch Negative
WHICKER ASSET MGT: $8.3M Sale of All Assets to Clarion Approved
YOSI SAMRA: Case Summary & 20 Largest Unsecured Creditors
[*] Court Denies PwC's Bid to Stay $2-Bil. Suit Over Mortgage Fraud
[^] Recent Small-Dollar & Individual Chapter 11 Filings
*********
1325 VIRGINIA: Case Summary & 2 Unsecured Creditors
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Debtor: 1325 Virginia Street, LLC
P. O. Box 2
Charleston, WV 25321
Case No.: 17-20457
Type of Business: Single Asset Real Estate (as defined in 11
U.S.C. Section 101(51B))
Chapter 11 Petition Date: September 5, 2017
Court: United States Bankruptcy Court
Southern District of West Virginia (Charleston)
Judge: Hon. Frank W. Volk
Debtor's Counsel: Joseph W. Caldwell, Esq.
CALDWELL & RIFFEE
P. O. Box 4427
Charleston, WV 25364-4427
Tel: 304-925-2100
Fax: (304) 925-2193
E-mail: joecaldwell@frontier.com
chuckriffee@frontier.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Jonathan Cavendish, member.
The Debtor's list of two unsecured creditors is available for free
at http://bankrupt.com/misc/wvsb17-20457.pdf
1776 AMERICAN: Hernandez Buying Houston Property for $138K
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1776 American Property IV, LLC, and affiliates ask the U.S.
Bankruptcy Court for the Southern District of Texas to authorize
Staunton Street Partners, LLC's sale of the single family residence
located at 12014 Becca Crossing Way, Houston, Harris County, Texas,
also known as Lot 6, Block 2, Spears Crossing, to Gustavo Baez
Hernandez for $137,500.
A hearing on the Motion is set for Sept. 25, 2017 at 10:30 a.m.
Collectively, as of the Petition Date, the Debtors owned 116 rental
single family homes/apartment units, five single family homes, and
76 vacant lots. In addition, Debtors 1776 IV, 1776 V, 1776 VII and
1776 VIII hold promissory notes and profit sharing arrangements
with various builders on approximately 58 lots.
Staunton owns the Property. It has adequately marketed the
Property for sale and has received multiple offers on it. All
things considered, the offer submitted by the Purchaser is the
highest and best offer. The parties entered into a contract for
the sale of the Property free and clear of all liens, claims and
encumbrances. All liens will attach to the proceeds of the sale or
be paid through the closing by the title company. The feasibility
period expires on Sept. 3, 2017 and the parties will be ready to
close shortly thereafter. Under the terms of the contract, the
closing must occur no later than Sept. 28, 2017. The Property is
subject to a mortgage held by Integrity Bank. The Debtor expects
Integrity Bank will consent to the sale.
The Property is subject to a mortgage, which is secured by a first
lien deed of trust held by Integrity Bank. The Deed of Trust
secures a mortgage on approximately 34 single family homes. The
mortgage is reflected by a promissory note in the original
principal amount of $4,060,000. The current principal balance of
the Note is approximately $1.2 million. The Debtor and Integrity
expect to reach an agreement on a release price of $80,000, which
will be paid at closing. The Debtor is proposing that Integrity
Bank continue to have a lien and deed of trust on the remaining 33
tracts, and will continue to have a lien on the net proceeds that
will be deposited into the Debtor's DIP account. Although an
agreement has not yet been finalized, the Debtor expects an
agreement to be reached by the time of the hearing.
The Debtor is represented by Ross Klingberg and AIM Realty in the
transaction. The Purchaser is represented by Isela Hernandez and
RE/MAX Elite Properties. Pursuant to the Order Authorizing
Application to AIM Realty, Staunton asks approval of the
commissions provided for in the Contract.
From the proceeds of the sale, the Debtors propose to pay at
closing (i) the 2016 and pro-rata 2017 ad-valorem property taxes
owed on the Property at the closing; (ii) the Release Price to
Integrity Bank; (iii) other secured claim on the property,
including past due HOA assessments; and (iv) the normal customary
closing costs and fees.
The Debtors ask the Court to waive any 14-day stay imposed by
Bankruptcy Rules 6004 and 6006.
A copy of the Contract attached to the Motion is available for free
at:
http://bankrupt.com/misc/1776_American_400_Sales.pdf
Integrity Bank is represented by:
L. David Smith, Esq.
CHERMOSKY, SMITH, RESSLING & SMITHPLLC
4646 Wild Indigo, Suite 110
Houston, TX 77027
About 1776 American Properties IV
1776 American Properties IV LLC and its 12 affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Tex. Lead Case No. 17-30422) on Jan. 27, 2017. The petitions were
signed by Jeff Fisher, director.
1776 American Properties IV estimated assets of $1 million to $10
million and liabilities of less than $50,000.
The cases are assigned to Judge Karen K. Brown.
Josh T. Judd, Esq., at Andrews Myers PC, serves as the Debtors'
bankruptcy counsel.
No trustee or examiner has been appointed in the bankruptcy cases
and no official committee of unsecured creditors has been
established.
1776 AMERICAN: Selling The Woodlands Property for $212K
-------------------------------------------------------
1776 American Property IV, LLC, and affiliates ask the U.S.
Bankruptcy Court for the Southern District of Texas to authorize
Austin Road Partners, LLC's sale of the single family residence
located at 94 Dove Call Ct, The Woodlands, Texas, also known as Lot
13, Block 3, Woodlands Village Sterling Ridge, to Laurie Reinsmith
and David Doty for $212,000.
A hearing on the Motion is set for Sept. 25, 2017 at 10:30 a.m.
Collectively, as of the Petition Date, the Debtors owned 116 rental
single family homes/apartment units, five single family homes, and
76 vacant lots. In addition, Debtors 1776 IV, 1776 V, 1776 VII and
1776 VIII hold promissory notes and profit sharing arrangements
with various builders on approximately 58 lots.
Austin owns the Property. The Property is subject to a mortgage,
which is secured by a first lien deed of trust held by Green Bank.
The Deed of Trust secures a mortgage on two remaining tracts. The
mortgage is reflected by a promissory note in the original
principal amount of $450,000. The current principal balance of the
Note is approximately $250,000. The net proceeds will go to pay
down the Note at closing. Green Bank will continue to have a lien
and deed of trust on the remaining tract. Green Bank consents to
the sale.
Austin and the Purchasers entered into a contract for the sale of
the Property free and clear of all liens, claims and encumbrances.
There is no feasibility period and the parties are ready to close.
Under the terms of the contract, closing must occur no later than
Sept. 29, 2017. The Property is subject to a mortgage held by
Green Bank. The net proceeds of the sale will be paid to Green
Bank.
The Debtor is represented by William Klingberg and AIM Realty in
the transaction. The Purchasers are represented by David Doty and
Village Realty. Pursuant to the Order Authorizing Application to
AIM Realty, Austin asks approval of the commissions provided for in
the Contract.
From the proceeds of the sale, the Debtors propose to pay at
closing (i) the 2016 and pro-rata 2017 ad-valorem property taxes
owed on the Property at the closing; (ii) the Release Price to
Integrity Bank; (iii) other secured claim on the property,
including past due HOA assessments; and (iv) the normal customary
closing costs and fees.
The Debtors ask the Court to waive any 14-day stay imposed by
Bankruptcy Rules 6004 and 6006.
A copy of the Contract attached to the Motion is available for free
at:
http://bankrupt.com/misc/1776_American_401_Sales.pdf
The Purchasers:
Laurie Reinsmith and David Doty
161 S Bantam Woods Circle
The Woodlands, TX 77471
Telephone: (281) 770-5667
E-mail: lreinsmith@gmail.co
Green Bank is represented by:
Bruce M. Badger, Esq.
BADGER LAW OFFICE
3400 Avenue H. Second Floor
Rosenberg, TX 77471
About 1776 American Properties IV
1776 American Properties IV LLC and its 12 affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Tex. Lead Case No. 17-30422) on Jan. 27, 2017. The petitions were
signed by Jeff Fisher, director.
1776 American Properties IV estimated assets of $1 million to $10
million and liabilities of less than $50,000.
The cases are assigned to Judge Karen K. Brown.
Josh T. Judd, Esq., at Andrews Myers PC, serves as the Debtors'
bankruptcy counsel.
No trustee or examiner has been appointed in the bankruptcy cases,
and no official committee of unsecured creditors has been
established in the case.
21ST CENTURY ONCOLOGY: Sues US Cancer Care for Misrepresentation
----------------------------------------------------------------
BankruptcyData.com reported that 21st Century Oncology Holdings and
Central Coast Medical Oncology (CCMO) filed with the U.S.
Bankruptcy Court a complaint against U.S. CANCER CARE (USCC) and
OnCure Medical. The complaint alleges, "As a direct and proximate
result of USCC/ONCURE's fraudulent misrepresentations and
concealment, CCMO has suffered damages in an amount to be proven at
trial, but in any event in excess of $4,000,000. CCMO respectfully
requests relief as follows: For a declaration that The MSA is void,
neither the MSA nor the Sublease can be assumed, and both must be
rejected; funds set aside by CCMO are CCMO's property; USCC/ONCURE
must quit and surrender the premises and do everything necessary to
ensure continuity of care to CCMO patients receiving care at MHCC
following termination of the MSA, including but not limited to,
providing CCMO with access to all radiation oncology records in
USCC/ONCURE's possession, custody or control; CCMO has an allowable
claim of at least $4,000,000 for pre-petition and postpetition
compensatory damages for breach of the MSA and Sublease, fraud, and
tortious actions described above as well as unliquidated attorneys'
fees and costs of approximately $200,000 as of August 29, 2017; and
CCMO has an allowable claim for pre-petition and post-petition
punitive damages arising from the fraud and tortious actions of
USCC/ONCURE."
About 21st Century Oncology
21st Century Oncology Holdings, Inc., is a global provider of
integrated cancer care services. As of March 31, 2017, the company
operated 179 treatment centers, including 143 centers located in 17
U.S. states and 36 centers located in seven countries in Latin
America.
21st Century and 59 U.S. affiliates filed Chapter 11 petitions
under the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 17-22770)
on May 25, 2017. At the time of the filing, the Debtors estimated
their assets and debt at $1 billion to $10 billion.
The cases are pending before the Hon. Judge Robert D. Drain.
Lorenzo Marinuzzi, Esq., at Morrison & Foerster LLP, serves as the
Debtors' bankruptcy counsel. Kurtzman Carson Consultants LLC is
the Debtors' claims and noticing agent.
On June 8, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors. The Committee has
tapped Morrison & Foerster LLP as counsel and Berkeley Research
Group, LLC, and financial advisor.
A&D PROPANE: Sale Talks, Hurricane Harvey Delay Plan Filing
-----------------------------------------------------------
A&D Propane, Inc., asks the U.S. Bankruptcy Court for the Southern
District of Texas to extend the exclusivity period to file its plan
of reorganization and disclosure statement for 45 days or until
Oct. 20, 2017.
The Court set a deadline of Sept. 4, 2017, for the Debtor to file
its plan and disclosure statement or to move to extend that time
period. Sept. 4 was the Labor Day Holiday therefore under Federal
Bankruptcy Rule 9006(a)(1)(C) the deadline would be extended to
Sept. 5.
The Debtor tells the Court that emergency consideration is
requested based upon Hurricane Harvey and the insuing delay in
proceedings coupled with the fact that the Debtor is in discussions
to sell all or part of its business which will dramatically affect
its proposed plan.
On Aug. 25, 2017, Hurricane Harvey struck the coast of Texas and
inundated the City of Houston and surrounding areas with flood
waters. Because of the hurricane, the Debtor and its counsel were
unable to finalize the plan and disclosure statement prior to Sept.
5.
On Sept. 1, 2017, Chief Judge Jones entered a Third General Order
Concerning Hurricane Harvey whereby stating that the Clerk's Office
is declared to be inaccessible from Aug. 28 through Sept. 8.
The Debtor has been in discussions with a company interested in
either purchasing all or a substantial portion of the Debtor's
business which will drastically change any proposed Chapter 11
Plan. If a sale is proposed, the plan could change from a
percentage plan over five years to a 100% plan within the first
year.
About A&D Propane
Based in Huntsville, Texas, A&D Propane, Inc., filed a Chapter 11
petition (Bankr. S.D. Tex. Case No. 17-31502) on March 7, 2017.
Robert Dobyns, president, signed the petition. In its petition,
the Debtor disclosed $883,060 in assets and $1.56 million in
liabilities.
The Hon. Jeff Bohm presides over the case.
Julie M. Koenig, Esq., at Cooper & Scully, PC, serves as the
Debtor's bankruptcy counsel. Bryan Brassell of Padgett Business
Services was tapped by the Debtor to prepare its tax returns.
AEOLUS PHARMACEUTICALS: Incurs $949,000 Net Loss in Third Quarter
-----------------------------------------------------------------
Aeolus Pharmaceuticals, Inc., filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q reporting a
net loss of $949,000 on $13,000 of contract revenue for the three
months ended June 30, 2017, compared to a net loss of $872,000 on
$660,000 of contract revenue for the same period during the prior
year.
For the nine months ended June 30, 2017, the Company reported a net
loss of $3.07 million on $225,000 of contract revenue compared to a
net loss of $2.53 million on $1.53 million of contract revenue for
the nine months ended June 30, 2016.
As of June 30, 2017, Aeolus had $794,000 in total assets, $587,000
in total liabilities and $207,000 in total stockholders' equity.
Due to the BARDA 2017 Option Notice, under the BARDA Contract, the
Company has concluded that, as of Aug. 14, 2017, substantial doubt
exists about its ability to continue as a going concern given the
Company's lack of current revenue sources, as well as recurring net
losses, negative cash flows from operations and working capital
deficiency. The Company had cash and cash equivalents of $403,000
on June 30, 2017, and $3,155,000 on Sept. 30, 2016. The decrease
in cash was primarily due to a decline in revenue following the
BARDA 2017 Option Notice and cash used in operating activities.
The Company has incurred significant losses since its inception. At
June 30, 2017, the Company's accumulated deficit was $193,259,000.
This raises substantial doubt about Aeolus' ability to continue as
a going concern, which will be dependent on the Company's ability
to generate sufficient cash flows to meet the Company's obligations
on a timely basis, obtain additional financing and, ultimately,
achieve operating profits through product sales or BARDA
procurements. The Company said it is exploring strategic and
financial alternatives, which may include a merger or acquisition
with or by another company, the sale of shares of stock and/or
convertible debentures, the establishment of new collaborations for
current research programs that include initial cash payments and
on-going research support and the out-licensing of the Company's
compounds for development by a third party. The Company believes
that without additional investment capital it will not have
sufficient cash to fund its activities in the near future, and will
not be able to continue operating. As such, the Company's
continuation as a going concern is dependent upon its ability to
raise additional financing or receive prior levels of funding for
medical countermeasure development from BARDA.
"If the Company is unable to obtain additional financing or BARDA
support to fund operations, it will need to eliminate some or all
of its activities, merge with another company, sell some or all of
its assets to another company, or cease operations entirely. There
can be no assurance that the Company will be able to obtain
additional financing on acceptable terms or at all, that the
Company will be able to obtain additional development support from
BARDA, or that the Company will be able to merge with another
Company or sell any or all of its assets."
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/yuxlqu
About Aeolus Pharmaceuticals
Mission Viejo, California-based Aeolus Pharmaceuticals, Inc., is a
Southern California-based biopharmaceutical company leveraging
significant government investment to develop a platform of novel
compounds in oncology and biodefense. The platform consists of
over 200 compounds licensed from Duke University and National
Jewish Health.
The Company's lead compound, AEOL 10150, is being developed as a
medical countermeasure ("MCM") against the pulmonary sub-syndrome
of acute radiation syndrome ("Pulmonary Acute Radiation Syndrome"
or "Lung-ARS") as well as the gastrointestinal sub-syndrome of
acute radiation syndrome ("GI-ARS"). Both syndromes are caused by
acute exposure to high levels of radiation due to a radiological or
nuclear event. It is also being developed for use as a MCM for
exposure to chemical vesicants such as chlorine gas, sulfur mustard
gas and nerve agents.
Aeolus reported a net loss attributable to common stockholders of
$6.04 million on $2.07 million of contract revenue for the fiscal
year ended Sept. 30, 2016, compared to a net loss attributable to
common stockholders of $2.62 million on $3.11 million of contract
revenue for the fiscal year ended Sept. 30, 2015.
ALGODON WINES: Incurs $1.97 Million Net Loss for Second Quarter
---------------------------------------------------------------
Algodon Wines & Luxury Development Group, Inc. filed with the
Securities and Exchange Commission its quarterly report on Form
10-Q reporting a net loss attributable to common stockholders of
$1.97 million on $413,295 of sales for the three months ended June
30, 2017, compared to a net loss attributable to common
stockholders of $3.29 million on $339,056 of sales for the three
months ended June 30, 2016.
The Company reported a net loss attributable to common stockholders
of $3.79 million on $1.03 million of sales compared to a net loss
attributable to common stockholders of $5.29 million on $730,955 of
sales for the six months ended June 30, 2016.
As of June 30, 2017, Algodon Wines had $8.07 million in total
assets, $4.14 million in total liabilities, $4.80 million in series
B convertible preferred stock and a total stockholders' deficiency
of $880,859.
The Company incurred losses from continuing operations of
$1,928,698 and $3,633,040 during the three and six months ended
June 30, 2017, respectively, and $2,900,305 and $4,622,608 during
the three and six months ended June 30, 2016, respectively. The
Company has an accumulated deficit of $71,371,152 at June 30, 2017.
Cash used in operating activities was $4,078,336 and $3,590,177
for the six months ended June 30, 2017, and 2016, respectively.
The Company said the aforementioned factors raise substantial doubt
about the Company's ability to continue as a going concern.
The Company also said it needs to raise additional capital in order
to expand its business objectives. The Company funded its
operations for the six months ended June 30, 2017, and 2016
primarily through private placement offerings of $4,839,714 (net of
offering costs of $4,500) and $4,230,500, respectively.
"If the Company is not able to obtain additional sources of
capital, it may not have sufficient funds to continue to operate
the business for the next twelve months. Historically, the Company
has been successful in raising funds to support its capital needs.
Management believes that it will be successful in obtaining
additional financing; however, no assurance can be provided that
the Company will be able to do so. There is no assurance that these
funds will be sufficient to enable the Company to attain profitable
operations or continue as a going concern.
"To the extent that the Company is unsuccessful, the Company may
need to curtail its operations and implement a plan to extend
payables and reduce overhead until sufficient additional capital is
raised to support further operations. There can be no assurance
that such a plan will be successful. Such a plan could have a
material adverse effect on the Company's business, financial
condition and results of operations, and ultimately the Company
could be forced to discontinue its operations, liquidate and/or
seek reorganization in bankruptcy."
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/QR3AlC
About Algodon Wines
New York-based Algodon Wines & Luxury Development Group, Inc.,
operates the Algodon Mansion, a Buenos Aires-based luxury boutique
hotel property. This lifestyle related real estate development
company has also redeveloped, expanded and repositioned a winery
and golf resort property called Algodon Wine Estates for
subdivision of a portion of this property for residential
development.
Algodon Wines reported a net loss of $10.04 million on $1.52
million of sales for the year ended Dec. 31, 2016, compared to a
net loss of $8.27 million on $1.86 million of sales for the year
ended Dec. 31, 2015.
Marcum LLP, in New York, issued a "going concern" qualification on
the consolidated financial statements for the year ended Dec. 31,
2016, citing that the Company has incurred significant losses and
needs to raise additional funds to meet its obligations and sustain
its operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
AMERICAN TANK: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: American Tank Company, Inc.
P.O. Box 9765
New Iberia, LA 70562-9765
Type of Business: American Tank Company, Inc specializes in
fabrication, design, erection, disassembly,
inspection and maintenance of API 12B and
AWWA D103 Bolted Tanks. It is a small
business debtor as defined in 11 U.S.C.
Section 101(51D).
Chapter 11 Petition Date: September 5, 2017
Case No.: 17-51160
Court: United States Bankruptcy Court
Western District of Louisiana (Lafayette)
Judge: Hon. Robert Summerhays
Debtor's Counsel: William C. Vidrine, Esq.
VIDRINE & VIDRINE, PLLC
711 West Pinhook Road
Lafayette, LA 70503
Tel: (337) 233-5195
Fax: (337) 233-3897
E-mail: williamv@vidrinelaw.com
Total Assets: $1.76 million
Total Liabilities: $1.83 million
The petition was signed by Larry J. Romero, president.
The Debtor's list of 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/lawb17-51160.pdf
AMPLIPHI BIOSCIENCES: Reports $6.46M Net Loss for Second Quarter
----------------------------------------------------------------
Ampliphi Biosciences Corporation filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q reporting a
net loss attributable to common stockholders of $6.46 million on
$28,000 of revenue for the three months ended June 30, 2017,
compared to a net loss attributable to common stockholders of $6.35
million on $103,000 of revenue for the three months ended June 30,
2016.
For the six months ended June 30, 2017, the Company reported a net
loss attributable to common stockholders of $9.70 million on
$57,000 of revenue compared to a net loss attributable to common
stockholders of $11.18 million on $209,000 of revenue for the six
months ended June 30, 2016.
As of June 30, 2017, AmpliPhi had $15.10 million in total assets,
$5.24 million in total liabilities and $9.86 million in total
stockholders' equity.
Research and development (R&D) expenses for the second quarter of
2017 decreased by $0.1 million to $1.1 million from $1.2 million
for the second quarter of 2016, primarily attributable to a $0.3
million decrease in costs from the completion of the CRS Phase 1
clinical trial in 2016, offset by an increase of $0.2 million in
payroll-related costs.
R&D expenses for the six months ended June 30, 2017, decreased by
$0.6 million to $2.6 million from $3.2 million for the six months
ended June 30, 2016, primarily due to approximately $0.4 million of
expense recorded in connection with assets acquired from Novolytics
Ltd. in 2016 and a decrease by $0.4 million in costs from the
completion of the CRS Phase 1 clinical trial in 2016, offset by a
$0.2 million increase in payroll-related costs.
General and administrative (G&A) expenses for the three months
ended June 30, 2017, increased by $0.3 million to $2.8 million from
$2.5 million for the second quarter of 2016. During the three
months ended June 30, 2017, the Company recorded a $0.4 million
severance charge, a $0.3 million increase in payroll-related costs
and a $0.4 million non-cash charge related to the fair value of
523,210 shares of the Company's common stock to potentially be
issued to certain shareholders, subject to shareholder approval at
its 2017 annual meeting. These increases were primarily off-set by
a $0.4 million decrease in legal fees and a $0.4 million decrease
in non-cash stock-based compensation expense from the same period
in the prior year.
G&A expenses for the first six months of 2017 decreased by $0.4
million to $4.7 million from $5.1 million for the first six months
of 2016. The decrease was primarily attributable to declines of
$0.9 million in non-cash stock-based compensation expense and $0.5
million in legal and professional fees, partially offset by a $0.4
million severance charge, a $0.3 million increase in
payroll-related costs and a $0.4 million non-cash charge related to
the 523,210 shares of the Company's common stock potentially
issuable to certain shareholders, subject to shareholder approval
at our 2017 annual meeting.
Operating expenses included non-cash charges totaling $5.8 million
for the impairment of intangible assets for the excess of book
value over the computed fair value of those assets as of June 30,
2017. The impaired assets were recorded in connection with
acquisitions of predecessor companies in 2011 and 2012.
"The establishment of the Global Antimicrobial Resistance (AMR)
Collaboration Hub at the recent G20 summit in July underscores the
importance of the AMR issue for public health," said Paul C. Grint,
M.D., CEO of AmpliPhi Biosciences. "I am excited to be at AmpliPhi
where we are pioneering bacteriophage therapies for patients
suffering from MDR infections and developing a promising approach
to address the AMR threat.
"We are developing our lead therapeutic candidates through an
approach to treat individual patients suffering from serious or
life-threatening infections who have failed multiple courses of
antibiotics and have few or no satisfactory treatment options," Dr.
Grint added. "We expect this strategy to validate the clinical
utility of our therapies by early 2018 and position us to initiate
further efficacy clinical trials later that year."
"We are executing on the strategy to provide our therapeutic
candidates AB-SA01 and AB-PA01 targeting S. aureus and P.
aeruginosa, respectively, to patients under single-patient expanded
access guidelines ("compassionate use")," said Igor P. Bilinsky,
Ph.D., AmpliPhi's chief operating officer. "Our goal remains to
treat at least 10 patients by the end of 2017 and additional
patients in early 2018. Based on this data set, we plan to define
indications and optimal treatment regimens for further development
and, in consultation with the FDA and other regulatory agencies,
define the potential path to regulatory approval.
"We recently supplied AB-PA01 to a major U.S. teaching hospital for
a patient suffering from a life-threatening MDR P. aeruginosa lung
infection," added Dr. Bilinsky. "Under an emergency IND allowed by
the FDA, multiple doses of AB-PA01 were administered intravenously
and by nebulizer. This was the first-in-human administration of
AB-PA01, and the treatment was well tolerated. We expect the
results to be submitted for presentation at a future medical
conference."
Second Quarter 2017 and Recent Business Highlights
* Appointed Paul C. Grint, M.D. as CEO. Dr. Grint has served as
a director of AmpliPhi since November 2015 and has more than
two decades of executive leadership experience in biologics
and small molecule development, including the successful
development and commercialization of anti-infective products.
* Achieved first-in-human dosing of AB-PA01 targeting P.
aeruginosa under an emergency IND allowed by the FDA.
Multiple doses of AB-PA01 delivered intravenously and by
nebulizer were well tolerated.
* Announced positive feedback from an FDA Type B meeting in
which the FDA "acknowledged that phage therapy is an exciting
approach to treatment of MDR organisms and expressed a
commitment to addressing the unique regulatory challenges
that might arise during product development."
* Presented at the two-day "Bacteriophage Therapy: Scientific
and Regulatory Issues" workshop sponsored by the FDA and
National Institutes of Health. The workshop featured
presentations by government, academic, and industry opinion
leaders on advancements in bacteriophage technology, clinical
case studies and regulatory considerations.
* Presented on the "Adding Tools to the Toolbox: New Technology
to Overcome AMR Mechanisms" panel at the 2017 BIO
International Convention. Actively participated in the BIO
AMR Working Group that advocates for policies to facilitate
the development of novel technologies to address MDR
infections.
* Announced an oral case presentation at the Centennial
Celebration of Bacteriophage Research at the Institut Pasteur
in Paris highlighting the successful treatment of a
critically ill patient with an MDR Acinetobacter baumannii
infection, by Dr. Biswajit Biswas of the U.S. Navy’s Medical
Research Center.
Second Quarter Financial Overview
* On May 10, 2017, the Company completed an underwritten p
public offering of common stock and warrants, in which it
received net proceeds of approximately $9.0 million after
deducting underwriting discounts and commissions, certain
incentive payments and other offering expenses paid by the
Company. The Company currently has 8.7 million common shares
outstanding.
* Cash and cash equivalents were $9.0 million as of June 30,
2017, compared with $5.7 million as of Dec. 31, 2016. In
2017, the Company made operational changes in line with its
strategic emphasis on precisely targeted bacteriophage
therapies and believes its existing cash resources will be
sufficient to fund its planned operations until mid-2018.
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/BtSLhm
About AmpliPhi
AmpliPhi Biosciences Corp. is a biotechnology company focused on
the discovery, development and commercialization of novel phage
therapeutics. Its principal offices occupy 1,000 square feet of
leased office space pursuant to a month-to-month sublease, located
at 3579 Valley Centre Drive, Suite 100, San Diego, California. It
also leases 700 square feet of lab space in Richmond, Virginia,
5,000 square feet of lab space in Brookvale, Australia, and 6,000
square feet of lab and office space in Ljubljana, Slovenia.
Ampliphi reported a net loss attributable to common stockholders of
$24.27 million for the year ended Dec. 31, 2016, compared to a net
loss attributable to common stockholders of $10.79 million for the
year ended Dec. 31, 2015.
Ernst & Young LLP, in San Diego, California, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Dec. 31, 2016, citing that the Company has recurring
losses and negative cash flows from operations that raise
substantial doubt about its ability to continue as a going concern.
ANGELICA CORP: Court Confirms 3rd Amended Plan
----------------------------------------------
BankruptcyData.com reported that the U.S. Bankruptcy Court entered
an order confirming Angelica's Third Amended Joint Chapter 11 Plan.
Substantially all of Angelica's assets were sold during the
Company's Chapter 11 proceeding, with sale proceedings used to
satisfy various claims.
About Angelica Corp.
Headquartered in Alpharetta, Georgia, Angelica Corp. is a national
provider of medical laundry and linen management services,
supplying approximately 3,800 healthcare providers in 25 states,
including approximately 850 hospitals, 350 long-term care
facilities, and 2,600 outpatient medical practices. Angelica
provides its laundry and linen management services through a
network of over 30 laundry plants and depots located across the
nation and a fleet of over 220 delivery vehicles. It currently
employs approximately 3,900 employees, roughly 69% of whom are
unionized.
Angelica Corp., formerly known as Angelica, Angelica Healthcare,
and Angelica Image Apparel, and four of its affiliates sought
Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 17-10870) on
April 3, 2017. The petitions were signed by John Makuch, interim
chief financial officer.
Angelica disclosed assets at $208 million and liabilities at $216.8
million as of Dec. 24, 2016.
Angelica Corp is now known as RFID Corporation.
The cases are assigned to Judge James L. Garrity Jr.
The Debtors tapped Weil, Gotshal & Magnes LLP, as bankruptcy
counsel, and Grant Thornton LLP, as auditor and tax advisor.
An official committee of unsecured creditors has been appointed in
the Chapter 11 cases. The committee hired Cole Schotz, PC, as
bankruptcy counsel, and FTI Consulting, Inc., as financial advisor.
APOLLO ENDOSURGERY: Novo Holdings Owns 6.3% of Class A Shares
-------------------------------------------------------------
In an amended Schedule 13G filed with the Securities and Exchange
Commission, Novo Holdings A/S reported that as of Aug. 10, 2017, it
beneficially owns 1,081,072 shares of Class A common stock, par
value $0.001 per share, of Apollo Endosurgery, Inc., constituting
6.3 percent of the shares outstanding.
Novo Holdings A/S is a Danish limited liability company wholly
owned by the Novo Nordisk Foundation. Novo Holdings A/S, through
its Board of Directors, has the sole power to vote and dispose of
the 1,081,072 shares of common stock beneficially owned by Novo
Holdings A/S. The Novo Board, currently comprised of Sten
Scheibye, Goran Ando, Jeppe Christiansen, Steen Riisgaard, Lars
Rebien Sorensen and Per Wold-Olsen, may exercise voting and
dispositive control over the Novo Shares only with the support of a
majority of the Novo Board. As such, no individual member of the
Novo Board is deemed to hold any beneficial ownership or reportable
pecuniary interest in the Novo Shares.
On July 28, 2017, Novo Holdings A/S sold 1,400 shares of the
Issue's common stock in the open market through a broker's
transaction at a weighted average price of $6.78 per share.
On July 31, 2017, Novo Holdings A/S sold 7,602 shares of the
Issuer's common stock in the open market through a broker's
transaction at a weighted average price of $6.45 per share.
On Aug. 1, 2017, Novo Holdings A/S sold 3,000 shares of the
Issuer's common stock in the open market through a broker's
transaction at a weighted average price of $6.42 per share.
On Aug. 3, 2017, Novo Holdings A/S sold 3,000 shares of the
Issuer's common stock in the open market through a broker's
transaction at a weighted average price of $6.15 per share.
On Aug. 4, 2017, Novo Holdings A/S sold 4,000 shares of the
Issuer's common stock in the open market through a broker's
transaction at a weighted average price of $6.35 per share.
On Aug. 7, 2017, Novo Holdings A/S sold 4,000 shares of the
Issuer's common stock in the open market through a broker's
transaction at a weighted average price of $6.06 per share.
On Aug. 8, 2017, Novo Holdings A/S sold 89,119 shares of the
Issuer's common stock in the open market through a broker's
transaction at a weighted average price of $5.95 per share.
On Aug. 10, 2017, Novo Holdings A/S sold 97,000 shares of the
Issuer's common stock in the open market through a broker's
transaction at a weighted average price of $4.12 per share.
A full-text copy of the regulatory filing is available at:
https://is.gd/sCJYOq
About Apollo Endosurgery
Apollo Endosurgery, Inc. -- http://www.apolloendo.com/-- is a
medical device company focused on less invasive therapies for the
treatment of obesity, a condition facing over 600 million people
globally, as well as other gastrointestinal disorders. Apollo's
device based therapies are an alternative to invasive surgical
procedures, thus lowering complication rates and reducing total
healthcare costs. Apollo's products are offered in over 80
countries today. Apollo's common stock is traded on NASDAQ Global
Market under the symbol "APEN".
On Dec. 29, 2016, a wholly owned subsidiary of Lpath, Inc., merged
with and into Apollo Endosurgery, Inc. resulting in Original Apollo
becoming a wholly owned subsidiary of Lpath. At the Effective
Time, Lpath effected a name change to "Apollo Endosurgery, Inc."
Each share of Original Apollo common stock (after adjusting for the
1-for-5.5 reverse split of common stock effected by the Issuer
immediately following consummation of the Merger) was exchanged for
0.31632739 shares of the Issuer's common stock at the Effective
Time of the Merger.
Apollo Endosurgery reported a net loss attributable to common
stockholders of $41.16 million for the year ended Dec. 31, 2016,
compared to a net loss attributable to common stockholders of
$36.38 million for the year ended Dec. 31, 2015.
As of June 30, 2017, Apollo Endosurgery had $86.21 million in total
assets, $58.11 million in total liabilities, and $28.10 million in
total stockholders' equity.
AVANTOR INC: Fitch Assigns First Time 'B' IDR; Outlook Stable
-------------------------------------------------------------
Fitch Ratings has assigned Avantor, Inc. a first time 'B' Issuer
Default Rating (IDR) and Stable Outlook. The rating action follows
the announcement that Avantor will acquire VWR Corporation (VWR) in
a $6.4 billion transaction, or $33.25 in cash per share of VWR
common stock. The acquisition will be financed with a $3 billion
term loan (split into USD and EUR denominated tranches), $2 billion
secured notes (split into USD and EUR denominated tranches), $2.25
billion in unsecured notes, $2 billion of senior PIK preferred
equity and $1.65 billion of convertible preferred equity. The
company will draw on its accounts receivable facility to pay deal
expenses.
KEY RATING DRIVERS
Strengthens Positioning, Diversification: Avantor's acquisition of
VWR strengthens the combined entity's portfolio of products and
customer relationships. VWR has solid industry positions supported
by extensive brand recognition and reputation. It also has a highly
diversified portfolio of products and customers within the
laboratory supply market, with $4.6 billion in annual sales. Legacy
Avantor helps to fill geographic and product/platform gaps.
High Leverage Post Transaction: While gross debt to EBITDA will be
high at 17.9x by year-end 2017, debt reduction and cost synergies
should help to reduce leverage to 10.2x by year-end 2018. Fitch
believes some amount of cost synergies are relatively easily
achievable, based on the cost structures of the companies being
combined and the past history of both in realizing cost synergies
following acquisitions. Management plans to continue to reduce
leverage through voluntary term loan prepayments and improved
operation. Fitch expects Avantor will maintain a credit profile
supportive of a 'B' rating, although Fitch incorporates
acquisitions in its forecasts.
Positive and Improving FCF: Low-single-digit organic revenue growth
and incrementally improving pro forma margins should drive
consistently positive normalized FCF of roughly $300 million.
Despite Avantor's high leverage, Fitch expects interest coverage to
remain solid for the 'B' rating, even assuming a gradual increase
in interest rates on floating rate over the rating horizon.
Laboratory product distribution, as with most other distribution
businesses, generates relatively low margins. However, margins
benefit from the legacy Avantor business and VWR's higher-margin,
private-label segment and anticipated integration synergies.
Fitch's forecast incorporates roughly $220 million of cost
synergies over the period 2018 to 2020.
Moderate Growth: Fitch expects the combined company to generate
moderate organic revenue growth. Single-digit revenue growth,
driven by near mid-single-digit growth in the Americas and
high-single-digit growth in biopharma, should benefit from positive
demographic trends and advancements in technology. Strong biopharma
sales will likely more than offset the relatively weak performance
in academic end-markets. Foreign currency headwinds continue to
partly offset the positive effect of organic growth. Fitch's
ratings case forecast for Avanator does not include explicit
revenue synergies related to the business combination; this could
prove an upside to the forecast in the later years of the ratings
horizon.
DERIVATION SUMMARY
The combination of Avantor, Inc. and VWR Corp. creates a global
leader in the laboratory supply market with over $5 billion in
annual sales. The strategic rationale is supported by stable
positive free cash flow (FCF) generation through consumables- and
service-focused revenues, and enhanced access to biopharma industry
customers. The laboratory supply market has not experienced the
same degree of regulatory or pricing scrutiny as the rest of the
healthcare industry. Favorable business mix and low single-digit
growth (above traditional laboratory product and supplies industry
due to faster growth Avantor biopharma and biomaterials businesses)
will help to support a higher debt burden. Cash will be directed
toward debt reduction and tuck-in acquisitions as appropriate.
Thermo Fisher will be the combined company's closest peer within
the lab products industry. Thermo Fisher, a direct distribution
competitor, is materially larger than VWR, has an industry-leading
manufacturing business, and is much more conservatively
capitalized; Fitch currently rates the company 'BBB'. Other 'B'
rated healthcare companies operating in different industry
sub-sectors typically have 'leverage sensitivities in the 6.0x to
7.0x range. Fitch assigns a 'B' IDR despite Avantor's high total
debt with equity credit to EBITDA because the strong operating
profile and significant FCF generation balances high leverage.
KEY ASSUMPTIONS
Fitch's key assumptions within the agency's rating case for the
issuer include:
-- Low- to mid-single-digit organic growth periodically augmented
by acquisitions;
-- Margin improvement as cost control, integration synergies and
favorable mix more than offset any pricing headwinds;
-- FCF consistently positive, capex equal to 2% of revenue; debt
reduction balanced with tuck-in acquisitions as appropriate;
-- Gross debt to EBITDA maintained between 8.5x to 9.5x.
RATING SENSITIVITIES
Future Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- Continued operational strength and maintenance of a higher
level of positive FCF generation sufficient to fund targeted
acquisitions and significant debt reduction;
- Substantially achieving all cost synergies associated with the
VWR acquisition, with leverage trending towards 6.0x.
Future Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- Increased competitive and/or regulatory operating pressure that
weighs on sales margin and cash flow generation;
- Falling meaningfully short of achieving all cost synergies
associated with the VWR acquisition;
- Free cash flow (FCF) sustained below $100 million and operating
EBITDA/interest paid durably below 2.0x.
LIQUIDITY
Adequate Liquidity: Avantor has adequate access to bank credit and
the capital markets. The combined company will have an estimated
$100 million of cash on hand and $200 million availability under a
$250 million accounts receivable facility and a $250 million senior
secured revolver. Fitch estimates the combined company will
generate more than $300 million of normalized FCF annually.
Debt Maturities Manageable: The capital structure put in place will
have manageable debt maturities, with only $25 million of annual
term loan amortization. Fitch expects term loan reduction in excess
of required amortization as the company looks to deleverage post
acquisition.
Equity Credit Assumptions: In calculating leverage metrics for
Avantor, Fitch assigns no equity credit to the $2 billion of senior
PIK preferred equity and 100% equity credit to the $1.65 billion of
convertible preferred equity that are expected to be sources of
funding for the transaction. The $1.65 billion of convertible
equity is assumed to be $2.72 billion given its liquidation
preference of 1.65x the face value of the equity. The convertible
preferred received 100% equity credit largely because of the lack
of a dividend, while the PIK preferred receive 0% equity credit
because of select covenants.
FULL LIST OF RATING ACTIONS
Fitch has assigned the following ratings.
Avantor Inc.
-- Long-Term Issuer Default Rating 'B';
-- Senior First Lien Secured Revolver 'BB'/'RR1/100%';
-- Senior First Lien Secured Term Loans 'BB'/'RR1/100%';
-- Senior First Lien Secured Notes 'BB'/'RR1/100%';
-- Senior Unsecured Notes 'B'/'RR4/36%'.
The Rating Outlook is Stable.
Fitch's recovery analysis assumes a going concern enterprise value
under a distressed scenario of approximately $6.5 billion. The
analysis employs a restructured EBITDA of $936 million, which
contemplates 2018 forecasted EBITDA discounted by 10% assuming
first-year synergies are not fully realized. A going concern EV
multiple of 7.5x is used. This is slightly higher than the 7.0x
multiple used for legacy VWR, considering legacy Avantor adds
higher-margin and potentially higher-value products.
The senior secured credit facility has outstanding recovery
prospects (100%) in a distressed scenario, which maps to 'BB/RR1',
three notches above the IDR. The facility is secured by a first
lien on substantially all of the assets of U.S.-based subsidiaries.
Availability of borrowings is governed by leverage, and Fitch
therefore assumes the $250 million revolver is fully drawn in
reorganization. The secured notes also have outstanding recovery
prospects (100%) and receive a 'BB/RR1' rating. The senior
unsecured notes are considered to have average recovery prospects
(36%), which correspond to a 'B/RR4' rating, the same as the IDR.
AVANTOR INC: Moody's Lowers CFR to B3; Outlook Negative
-------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
(CFR) of Avantor, Inc. to B3 from B2 and the Probability of Default
Rating to B3-PD from B2-PD. These actions primarily relate to
Avantor's planned acquisition of VWR Corporation ("VWR") for over
$6 billion as well as other recent acquisitions and shareholder
dividends, all of which will significantly raise financial
leverage. The outlook is negative. This concludes the rating review
initiated on April 28, 2017.
As part of the financing for the VWR acquisition, Moody's assigned
a B2 rating to the proposed $3.25 billion senior secured credit
facility and $2.0 billion senior secured notes. The rating agency
also assigned a Caa2 rating to the proposed $2.25 billion senior
unsecured notes. These ratings are subject to Moody's review of
final documentation.
Moody's confirmed all other ratings of Avantor's subsidiary,
Avantor Performance Materials Holdings, LLC, and expects to
withdraw these ratings at the close of the VWR acquisition.
Ratings downgraded:
Avantor, Inc.
Corporate Family Rating to B3 from B2
Probability of Default Rating to B3-PD from B2-PD
Ratings Assigned:
Avantor, Inc.
Senior secured first lien revolving credit facility expiring 2022
at B2 (LGD 3)
Senior secured first lien term loan due 2024 at B2 (LGD 3)
Senior secured notes due 2024 at B2 (LGD 3)
Senior unsecured notes due 2025 at Caa2 (LGD 5)
The outlook is negative.
Ratings confirmed that will be withdrawn upon close:
Avantor Performance Materials Holdings, LLC
Gtd senior secured first lien revolving credit facility expiring
2022, B1 (LGD 3)
Gtd senior secured first lien term loan due 2024, B1 (LGD 3)
Gtd senior secured second lien term loan due 2025, Caa1 (LGD 6)
The outlook is negative.
RATINGS RATIONALE
The B3 Corporate Family Rating is constrained by Avantor's very
high financial leverage following debt being incurred to acquire
VWR. Moody's estimates that Avantor's pro forma adjusted debt to
EBITDA will exceed 9.0 times excluding the benefit of anticipated
cost synergies. Including anticipated cost synergies, most of which
will be realized within two years, adjusted debt to EBITDA would
still be very high at around 7.7 times. These figures are highly
prospective as they give the combined company credit for a
significant amount of pro forma adjustments in addition to the
synergy estimates. Inability to achieve substantially all planned
cost savings is a key risk and would likely result in adjusted
debt/EBITDA remaining above 7.0 times for the foreseeable future.
The rating also incorporates the potential for integration
challenges and the earnings volatility associated with Avantor's
legacy business.
The rating is supported by the steady and largely recurring nature
of around 80% of the combined revenue base, as well as the high
customer switching costs associated with the company's ultra-high
purity materials business. The rating also reflects the combined
company's good scale with revenues in excess of $5 billion and good
customer, geographic, and product diversification. The B3 is also
supported by the fact that around 70% of Avantor's post-combination
earnings will be coming from VWR's distribution business. VWR has a
long track record of stable business performance. Further, the
rating incorporates the strategic benefits of the combination of
Avantor and VWR. The combination will give Avantor direct access to
laboratory customers. Finally, the rating reflects Moody's view
that, despite very high leverage, the company will generate
positive free cash flow and will maintain good liquidity.
The negative outlook reflects the risk of operating disruption due
to the sizeable integration of Avantor and VWR. The outlook further
reflects the highly prospective nature of Avantor's
synergy-adjusted leverage and Moody's view that achieving all of
the synergies that management anticipates is unlikely.
Moody's could downgrade the ratings if Avantor experiences
disruption in the integration of VWR or if anticipated cost and
revenue synergies do not materialize. Further weakening of
liquidity or Moody's expecting that Avantor will be unable to
sustain minimum free cash flow of $200 million annually could also
result in a downgrade. Finally, if Moody's believes that adjusted
debt/EBITDA will be sustained above 7.5 times, the ratings could be
downgraded.
Moody's could upgrade the ratings if Avantor successfully
integrates VWR and achieves anticipated cost and revenue synergies.
Specifically, if Moody's believes adjusted debt/EBITDA will be
sustained below 6.5 times, the ratings could be upgraded.
The principal methodology used in these ratings was that for the
Distribution & Supply Chain Services Industry published in December
2015.
Following the VWR acquisition, Avantor will be a global leader in
the distribution of laboratory scientific supplies. It will also be
a global supplier of ultra-high-purity materials for the life
sciences and advanced technology industries. Avantor is owned by
affiliates of New Mountain Capital. The company is headquartered in
Pennsylvania. Pro forma revenues will exceed $5 billion.
AVANTOR INC: S&P Alters Outlook to Stable & Affirms 'B' CCR
-----------------------------------------------------------
S&P Global Ratings affirmed its 'B' corporate credit rating on
Center Valley, Pa.-based Avantor Inc. and revised the outlook to
stable from developing.
S&P said, "In addition, we assigned a 'B' rating to Avantor's
US$1.4 billion and EUR500 million secured notes. We assigned a 'B'
rating to the secured credit facility, consisting of a US$250
million revolving credit facility, a US$2.4 billion term loan, and
a EUR500 million term loan. The recovery rating on this debt is
'3', indicating expectations for meaningful (50%-70%; rounded
estimate: 50%) recovery in the event of a payment default. At the
same time, we assigned a 'CCC+' rating to the company's senior
unsecured notes. The recovery rating on this debt is '6',
indicating expectations for negligible (0%-10%: rounded estimate:
5%) recovery in a default."
Although leverage has increased as a result of the transaction, our
rating affirmation on Avantor takes into account the significant
increase in size and scale of the combined businesses of Avantor
and VWR, the greater diversity of its customers, and our
expectation that the combined entity will generate moderate free
cash flow. Pro forma leverage, including year one anticipated
synergies and incorporating year one restructuring costs as well as
considering the senior and junior preferred stock as debt-like, S&P
expects leverage to be around the mid-11x area for the fiscal year
ending Dec. 31, 2018, versus our previous expectation of 5x-6x.
"The stable outlook reflects our expectation that the company will
make progress in achieving some of the planned synergies and that
restructuring charges will be less than $50 million per year. It
also is based on our view that the combined entity will continue to
grow at a mid-single-digit pace and generate moderate discretionary
cash flow.
"We could lower the rating if integration challenges arise and cash
interest coverage declined to 2x. This could entail revenue growth
stalling and margin improvement being 300 basis points below our
base-case projections.
"Although unlikely, we could consider raising the rating if we were
convinced the company would maintain adjusted leverage below 7x.
Given financial sponsorship ownership and currently very high
leverage, this would likely require EBITDA margin expansion to at
least 19% and likely entail an IPO in which the preferred shares
are redeemed or converted into common stock."
B N EMPIRE: Case Summary & 4 Unsecured Creditors
------------------------------------------------
Debtor: B N Empire, LLC
17358 Emerald Chase Drive.
Tampa, FL 33647
Type of Business: B N Empire is a Florida limited liability
company and listed its business as a
single asset real estate (as defined in 11
U.S.C. Section 101(51B)).
Chapter 11 Petition Date: September 5, 2017
Case No.: 17-07841
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Debtor's Counsel: Alberto F Gomez, Jr., Esq.
JOHNSON, POPE, BOKOR, RUPPEL & BURNS, LLP
PO Box 1100
Tampa, FL 33601-1100
Tel: 813-225-2500
Fax: 813-223-7118
E-mail: al@jpfirm.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Rajesh Bahl, manager.
The Debtor's list of four unsecured creditors is available for free
at http://bankrupt.com/misc/flmb17-07841.pdf
BARMER ENTERPRISES: Wants Plan Filing Deadline Moved to Jan. 15
---------------------------------------------------------------
Barmer Enterprises, LLC, asks the U.S. Bankruptcy Court for the
Southern District of Florida to extend:
-- the 120-day period set forth in Section 1121(c)(2),
within which only the Debtor has the exclusive right
to file a plan of reorganization, by an additional
120 days until Jan. 15, 2018, and
-- the 180-day period set forth in Section 1121(c)(3),
within which only the Debtor has the exclusive right
to solicit acceptances to the filed plan, until
March 30, 2018.
The Debtor says that it needs additional time to move its stores
their new locations, operate with reduced expenses, complete
negotiations with the potential new supplier and reduce the
administrative liabilities to its former landlords.
The Debtor has fallen into arrears with its former landlords.
However, the Debtor is proposing to pay administrative claims on a
pro rata basis until the date of a plan confirmation hearing at
which time the claims will be paid in full in the amount awarded by
the Court.
The Debtor has found four new store locations in Coral Springs,
Pembroke Pines, Boynton Beach and Sunrise which the Debtor believes
to be in better condition and more accessible than its prior
locations. The Debtor has negotiated new leases which will result
in a savings of $30,000 a month.
The Debtor has reduced payroll from over $100,000 a month to
$65,000 a month or less. Payroll adjustments are ongoing.
The Debtor's major supplier is Giant Bicycles, and Debtor is known
to have a good selection of this popular brand of bicycle. On the
Petition Date the Debtor owed Giant Bicycles $210,000 more than the
value of the Giant Bicycle inventory (valued at cost) on hand.
Since the filing of the Petition the Debtor has paid cash in
advance to Giant, and has paid an additional $5,000 critical vendor
payment each week. The Debtor now has inventory on hand in the
same amount that is owed to Giant, potentially eliminating a
$210,000 unsecured claim.
Suntrust, N.A., has a blanket lien on all the Debtor's assets
including but not limited to the Debtor's cash collateral. The
Debtor has negotiated for use of cash collateral and is making
weekly adequate protection payments of $3,500 to Suntrust.
On the Petition Date, Cycling Sports Group Inc was a supplier. The
Debtor remits the value of the CSG inventory which it has sold the
prior week to CSG as an "adequate protection" payment. The Debtor
is also negotiating with a new supplier to replace CSG which will
provide inventory on a cash in advance basis and allow the Debtor
to increase its profit margins.
The Debtor contemplates emerging from Chapter 11 in January 2018
after the Christmas holidays.
About Barmer Enterprises
Headquartered in Fort Lauderdale, Florida, Barmer Enterprises, LLC,
owns and operates eight retail bicycle stores known as Bike America
-- http://www.bikeam.com/-- and located in Pembroke Pines, East
Boca, West Boca, Sunrise, Coral Springs, Boynton Beach and West
Palm Beach. Barmer, which is owned by Gary Mercado and Steven C.
Barnes, bought the retail chain in 2014. The first Bike America
store opened in 1970 in Boca Raton. Barmer has about 40 employees
and its assets include inventory and fixtures. It owns no real
estate.
Barmer Enterprises filed a voluntary Chapter 11 petition (Bankr.
S.D. Fla. Case No. 17-16095) on May 15, 2017, estimating assets up
to $50,000 and liabilities between $1 million and $10 million. The
petition was signed by Gary Mercado, managing member. Judge
Raymond B. Ray presides over the case. Susan D. Lasky, Esq., at
Susan D Lasky, PA, serves as the Debtor's bankruptcy counsel.
BIOLARGO INC: Incurs $2.51 Million Net Loss in Second Quarter
-------------------------------------------------------------
Biolargo, Inc., filed with the Securities and Exchange Commission
its quarterly report on Form 10-Q reporting a net loss of $2.51
million on $99,978 of revenues for the three months ended June 30,
2017, compared to a net loss of $1.66 million on $38,986 of
revenues for the three months ended June 30, 2016.
For the six months ended June 30, 2017, the Company reported a net
loss of $4.57 million on $145,995 of revenues compared to a net
loss of $3.31 million on $52,928 of revenues for the six months
ended June 30, 2016.
As of June 30, 2017, Biolargo had $642,951 in total assets, $4.11
million in total liabilities and a total stockholders' deficit of
$3.47 million.
"We have been, and anticipate that we will continue to be, limited
in terms of our capital resources. As reflected in the
accompanying financial statements, we had a net loss of $4,577,870
for the six months ended June 30, 2017, and an accumulated
stockholders' deficit of $96,256,129 as of June 30, 2017. Our
total cash balance was $433,539 at June 30, 2017, a decrease of
$1,476,614 since December 31, 2016. Our working capital at June
30, 2017 was negative $3,175,349. The short-term demands on our
liquidity consist of our obligations to pay our employees, multiple
consultants, and for other ongoing operational obligations,
including research and development activities in Canada and in our
medical subsidiary. In the past, because we had limited capital
available, we have paid only a portion of these obligations in
cash, and the remainder by the issuance of common stock or options
pursuant to the accounts payable conversion plan approved by our
board of directors."
As of June 30, 2017, the Company had $5,805,668 in principal
amounts due on various debt obligations. Of that amount,
$4,830,097 are convertible at our option into common stock at
maturity. Additionally, the Company had $344,438 of accounts
payable and accrued expenses.
"We will be required to raise substantial additional capital to
continue our current level of operations, including without
limitation, hiring additional personnel, additional scientific and
third-party testing, costs associated with obtaining regulatory
approvals and filing additional patent applications to protect our
intellectual property, and possible strategic acquisitions or
alliances, as well as to meet our liabilities as they become due
for the next 12 months. We have been, and will continue to be,
required to financially support the operations of our subsidiaries,
none of which are operating at a positive cash flow. Only one
subsidiary, Clyra, has financing in place to fund operations for
the remainder of the year.
"The foregoing factors raise substantial doubt about our ability to
continue as a going concern. The accompanying consolidated
financial statements have been prepared on a going concern basis,
which contemplates the realization of assets and the settlement of
liabilities and commitments in the normal course of our business.
Ultimately, our ability to continue as a going concern is dependent
upon our ability to attract significant new sources of capital,
attain a reasonable threshold of operating efficiencies and achieve
profitable operations by licensing or otherwise commercializing
products incorporating our technologies. The accompanying
consolidated financial statements do not include any adjustments
that might be necessary if we are unable to continue as a going
concern.
"We are continuing to explore numerous alternatives for our current
and longer-term financial requirements, including additional raises
of capital from investors in the form of convertible debt or
equity. We recently concluded a successful raise of $1,000,000 at
our subsidiary Clyra. And, we are in discussions to secure an
equity line of credit. However, there can be no assurance that we
will be able to raise any additional capital.
"It is also unlikely that we will be able to qualify for bank or
other financial institutional debt financing until such time as our
operations are considerably more advanced and we are able to
demonstrate the financial strength to provide confidence for a
lender, which we do not currently believe is likely to occur for at
least the next 12 months or more.
"If we are unable to raise sufficient capital, we may be required
to curtail some of our operations, including efforts to develop,
test, market, evaluate and license our BioLargo technology. If we
were forced to curtail aspects of our operations, there could be a
material adverse impact on our financial condition and results of
operations."
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/Rnzxap
About BioLargo Inc.
BioLargo, Inc., is a provider of platform technologies. The
Company's products are used to eliminate contaminants that threaten
the water, health and quality of life. Its technology has
commercial applications within several industries. The Company
focuses on four areas: water treatment; industrial odor control
applications; commercial, household and personal care products
(CHAPP), and advanced wound care. Its AOS Filter combines iodine,
water filter materials and electrolysis within a water filter
device. It generates oxidation potential in order to oxidize and
breakdown or otherwise eliminate, soluble organic contaminant,
which are found in contaminated water.
Biolargo reported a net loss of $8.07 million on $281,106 of total
revenue for the year ended Dec. 31, 2016, compared with a net loss
of $5.07 million on $127,582 of total revenue for the year ended
Dec. 31, 2015.
Haskell & White LLP, in Irvine, California, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Dec. 31, 2016, citing that the Company has incurred
recurring losses, negative cash flows from operations and has
limited capital resources, and a net stockholders' deficit. These
matters raise substantial doubt about the Company's ability to
continue as a going concern.
BIOSTAGE INC: Reports $3.6 Million Net Loss for Second Quarter
--------------------------------------------------------------
Biostage, Inc., filed with the Securities and Exchange Commission
its quarterly report on Form 10-Q reporting a net loss of $3.60
million on $0 of revenues for the three months ended June 30, 2017,
compared with a net loss of $2.71 million on $28,000 of revenues
for the three months ended June 30, 2016.
The increase of $0.9 million or 33% is primarily attributable to
additional spending within research and development on outsourced
pre-clinical studies and employee cost of $1.0 million, and a
decrease in the gain on the change in the fair value of warrants of
$0.1 million. These were partially offset by a decrease in general
and administrative costs of $0.2 million primarily related to the
non-recurrence of re-branding costs incurred in 2016.
For the six months ended June 30, 2017, Biostage reported a net
loss of $7.44 million on $0 of revenues compared to a net loss of
$5.18 million on $28,000 of revenues for the six months ended June
30, 2016. The increase of $2.2 million or 42% is primarily
attributable to additional spending within research and development
on outsourced preclinical studies, scientific conferences, and
employee-related costs totaling $1.7 million. Also contributing to
the increased loss was the change in the fair value of warrants of
$0.8 million. These were partially offset by a decrease in general
and administrative costs of $0.3 million primarily related to
decreased non-cash share-based compensation to employees and
non-recurrence of re-branding costs incurred in 2016.
As of June 30, 2017, Biostage had $4.65 million in total assets,
$3.37 million in total liabilities and $1.28 million in total
stockholders' equity.
"Q2 was a great quarter for Biostage on many fronts; clinically,
scientifically and financially. We are extremely pleased with the
closing of the private placement and the signing of the definitive
agreement with First Pecos, LLC. This funding will eliminate the
financial overhang and will help fund the company's pediatric
program. Additionally, the future rights offering will allow our
shareholders to avoid involuntary dilution in future offerings,"
concluded Mr. McGorry.
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/tzrm0v
About Biostage
Biostage, Inc., formerly Harvard Apparatus Regenerative Technology,
Inc. -- http://www.biostage.com/-- is a biotechnology company
developing bio-engineered organ implants based on the Company's new
Cellframe technology which combines a proprietary biocompatible
scaffold with a patient's own stem cells to create Cellspan organ
implants. Cellspan implants are being developed to treat
life-threatening conditions of the esophagus, bronchus or trachea
with the hope of dramatically improving the treatment paradigm for
patients. Based on its preclinical data, Biostage has selected
life-threatening conditions of the esophagus as the initial
clinical application of its technology.
Biostage reported a net loss of $11.57 million on $82,000 of
revenues for the year ended Dec. 31, 2016, compared to a net loss
of $11.70 million on $118,000 of revenues for the year ended Dec.
31, 2015.
KPMG LLP, in Cambridge, Massachusetts, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2016, citing that the Company has suffered recurring
losses from operations and will require additional financing to
fund future operations which raise substantial doubt about its
ability to continue as a going concern.
BLACK MOUNTAIN GOLF: Liberty Village Balks at Plan Filing Delay
---------------------------------------------------------------
Liberty Village, LLC, filed with the U.S. Bankruptcy Court for the
District of Nevada an objection to Black Mountain Golf & Country
Club's request for extension of the exclusive periods to file and
confirm its plan of reorganization through Jan. 31, 2018, and May
31, 2018, respectively.
Liberty is the Debtor's largest creditor whose claims amounts
$5,342,540.15 and is secured by a first position deed of trust on
the Debtor's 27-hole golf course.
The Debtor's first request to extend its exclusivity period
enlarged its time frame to solicit acceptance of the Plan from
Sept. 31, 2017, to Jan. 31, 2018. Liberty claims that to date, the
Debtor has not provided the status of progress attained during this
first extension.
As reported by the Troubled Company Reporter on Sept. 4, 2017, the
Debtor, in its second request for extension, told the Court that it
is seeking an extension in order to conduct discovery in the
Adversary Proceeding, Shawn Lampman v. Black Mountain Golf &
Country Club, et al., Adv. Case No. 17-01178-btb and litigate that
matter.
Liberty complains that, among other things:
a. it is the largest creditor; however, the Debtor has
certainly made no progress with Liberty. Rather, the
Debtor has only scheduled a settlement conference with
the Liberty. While the Debtor has taken several actions
during this case, these actions do not equate to
progress; stabilization is not reorganization. Thus, this
factor weighs against the Debtor.
b. the Debtor continues to operate at a significant loss,
reporting a $201,567 loss due to operations during the
first 120-days in bankruptcy. Despite these significant
operational losses, it appears the Debtor continues to
sink additional funds into its operations. Alarmingly,
it appears the Debtor is using its post-petition
financing, payable as an expense of administration, to
keep its drowning operations afloat;
c. the Debtor claims it needs additional time to resolve an
adversary proceeding, Case No. 17-01178-BTB. However, an
on-going adversary proceeding cannot justify an extension
of exclusivity;
d. the Debtor seeks to extend exclusivity to pursue its
repurchasing application with the Bureau of Land
Management, which the Debtor hopes will eliminate the
reversionary interest the BLM currently holds in the BLM
Property. The Debtor claims that the appraised value of
the BLM Property is $30.8 million. However, the Debtor
offers no evidence that supports this valuation other
than a self-serving affidavit;
e. the Debtor states it has initiated its request for
rezoning with the City of Henderson, but offers no
evidence that supports that Rezoning will ensure a
successful reorganization of the Debtor (Repurchase and
Rezoning. Further, the Debtor reports it has engaged in
substantial conversations with neighborhood members
regarding a development plan for neighborhood
enhancements. However, it remains unclear how the Debtor
plans to fund this development plan given its massive
operational losses;
f. the Debtor claims pending state court actions make this
case is complex. In making this claim, the Debtor
ignores that all state court actions are stayed or have
been removed to bankruptcy court. Thus far, no creditors
have obtained relief from the automatic stay. These
state court actions, therefore, do not complicate the
Debtor's bankruptcy case. Further, this case involves
only 70 creditors and it has one asset, its property.
The small number of creditors and single Property estate
dictate this case is neither unusually large or complex
to justify extension;
g. based on the considerable and consistent operational
losses that the Debtor is sustaining, it hardly seems
plausible that the Debtor can pay its bills as they
become due. Specifically, the Debtor reported more than
a $200,000 loss over four months. The Debtor currently
has no strategy to address these loses. It follows that
this trend will presumably continue during the four-month
exclusivity extension that the Debtor seeks, resulting in
an additional $200,000; and
h. the Debtor has been in bankruptcy since March 30,
2017, which means the automatic stay has precluded the
Debtor's creditors from pursuing their rights for nearly
six months. During this time, the Debtor has not set
forth any evidence that assures its creditors that shows
the Debtor is forming a proficient Plan to rebound from
its massive operating deficit to remerge from bankruptcy.
Rather, it continues to sink additional capital into its
operations. These accrued losses ensure the Debtor
cannot reorganize, as it is far from clear how the Debtor
could plausibly recover from its never-ending losses.
Liberty says it may veto any Plan the Debtor proposes, because its
claim will likely represent more than one-third of the unsecured
creditors' vote.
A copy of the Objection is available at:
http://bankrupt.com/misc/nvb17-11540-186.pdf
Liberty is represented by:
Ryan A. Andersen, Esq.
Ani Biesiada, Esq.
ANDERSEN LAW FIRM, LTD.
101 Convention Center Drive, Suite 600
Las Vegas, NV 89109
About Black Mountain Golf & Country Club
Based in Henderson, Nevada, Black Mountain Golf & Country Club is a
member-owned golf facility open to the public. The Company is
non-profit corporation and a tax-exempt entity.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D. Nev. Case No. 17-11540) on March 30, 2017. The
petition was signed by Larry Tindall, president. At the time of
the filing, the Debtor estimated its assets at $10 million to $50
million and debts at $1 million to $10 million.
The case is assigned to Judge Bruce T. Beesley. Morris Polich &
Purdy LLP is the Debtor's legal counsel. The Debtor employed
Coffey & Rader CPA as its accountant and Harper Appraisal, Inc., as
appraiser. The Debtor hired Ray Fredericksen of Per4mance
Engineering in connection with its efforts to rezone its property.
No request has been made for the appointment of a trustee or
examiner, and no official committees have been appointed in this
Chapter 11 case.
BROCK HOLDINGS III: Moody's Cuts CFR to Caa2; Outlook Still Neg.
----------------------------------------------------------------
Moody's Investors Service downgraded Brock Holdings III, Inc.'s
corporate family rating to Caa2 from Caa1. The downgrade reflects
the imminent maturity of Brock's debt capital structure, the
negative impact of this maturity on Brock's liquidity profile, the
deterioration in operating results and credit metrics, and the
expectation that the company's credit profile will remain weak over
the next 12 to 18 months. The rating outlook changed to negative
from rating under review. This action concludes the review
initiated on June 5th, 2017 placing Brock's CFR, PD Probability of
Default Rating, and the ratings assigned to its other debt
instruments under review for a potential downgrade.
The following is a summary of the ratings outcome for Brock
Holdings III, Inc.:
Downgrades:
- Corporate family rating ("CFR"), downgraded to Caa2 from Caa1;
- Probability of Default Rating, downgraded to Caa2-PD from Caa1-
PD;
- $460 million First Lien Term Loan, downgraded to Caa1 (LGD3)
from B3 (LGD3);
Comfirmation:
- $190 million Second Lien Term Loan, confirmed at Caa3 (LGD5);
Outlook Actions:
- Outlook, Changed To Negative From Rating Under Review
RATINGS RATIONALE
Brock's Caa2 CFR is driven by the company's fast approaching
maturity for its entire debt capital structure. Unless the company
is able to successfully refinance its $190 million Second Lien Term
Loan -maturing in March 2018- by November 2017, the maturities of
both the $215 million ABL revolving facility (not rated) and the
$460 million First Lien Term Loan will spring forward to November
2017. The Caa2 CFR also reflects the deterioration operating
results over the last year, with a corresponding effect on credit
metrics. Leverage (measured as Moody's adjusted Debt to EBITDA) is
now above 10.0x and coverage (measured as EBITA/Interest) is well
under 1.0x. The rating also takes into account Moody's expectations
for continued high debt leverage and weak interest coverage over
Moody's 12-month forecast. Moody's also expects a short-term
negative impact from hurricane Harvey on the company's operating
results for fiscal year 2017; albeit longer-term the company may
benefit from rebuilding efforts. The rating is supported by the
positive momentum anticipated in oil and gas, Brock's main
end-market.
The negative outlook is predicated upon the risk of Brock being
unable to successfully refinance its capital structure before the
November 2017 deadline. As the November 2017 deadline gets closer,
Moody's see a growing possibility for a potential distressed
exchange or restructuring. If the company is unable to reduce
financial leverage and improve coverage, further downgrade could
occur.
The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.
WHAT COULD CHANGE RATINGS UP/DOWN
Factors that Could Lead to an Upgrade
Brock could be upgraded if its credit metrics improve to these
levels:
* Adjusted Debt-to-EBITDA is maintained at or below 8.0x.
* Interest coverage (measured as EBITA-to-Interest Expense),
sustained above 1.0x.
* Company is able to successfully refinanced its capital structure
and improves liquidity profile.
Factors that Could Lead to a Downgrade
Brock could be downgraded if adjusted credit metrics weaken to
these levels:
* Further deterioration in liquidity profile.
* Negative free cash flows.
CORPORATE PROFILE
Headquartered in Houston, TX, Brock Holdings III, Inc. ("Brock") is
a North American provider of scaffolding, insulation, coatings and
other services for the refining, petrochemical and power
industries. Lindsay Goldberg is Brock's primary owner. Revenues for
the 12 months ended July 2, 2017 were approximately $1.3 billion.
All Moody's calculations include Moody's standard adjustments.
CAESARS ENTERTAINMENT: Obtains $2.2 Billion Committed Financing
---------------------------------------------------------------
Caesars Entertainment Operating Company, Inc. and its Chapter 11
debtor subsidiaries said Sept. 5, 2017, that they have obtained
committed financing for $2.2 billion of proceeds to finance the fee
and leasehold interests in Caesars Palace Las Vegas, an iconic,
world class, 3,974 room full-service luxury resort and casino
located in the heart of the Las Vegas Strip. The proceeds from
this new-money financing for the to-be-formed REIT will be used to
repay CEOC's existing indebtedness in accordance with the terms of
CEOC's plan of reorganization. The financing is comprised of a
$1.55 billion mortgage loan, a $200 million senior mezzanine loan,
a $200 million intermediate mezzanine loan, and a $250 million
junior mezzanine loan. JPMorgan Chase Bank, National Association
("JPMorgan"), Barclays PLC ("Barclays"), Goldman Sachs Mortgage
Company ("Goldman"), and Morgan Stanley Bank, N.A. ("Morgan
Stanley") have committed to provide the mortgage loan and certain
other lenders have committed to provide the mezzanine loans.
About CEOC
Caesars Entertainment Operating Company, Inc. ("CEOC"), a majority
owned subsidiary of Caesars Entertainment Corporation, provides
casino entertainment services and owns, operates or manages 37
gaming and resort properties in 14 states of the United States and
internationally primarily under the Caesars, Harrah's and Horseshoe
brand names. CEOC is focused on building customer loyalty through
providing its guests with a combination of great service, excellent
products, unsurpassed distribution, operational excellence and
technology leadership as well as all the advantages of the Total
Rewards program. CEOC also is committed to environmental
sustainability and energy conservation, and recognizes the
importance of being a responsible steward of the environment.
About Caesars Entertainment
Caesars Entertainment Corp., formerly Harrah's Entertainment Inc.,
is one of the world's largest casino companies. Caesars casino
resorts operate under the Caesars, Bally's, Flamingo, Grand
Casinos, Hilton and Paris brand names. The Company has its
corporate headquarters in Las Vegas. Harrah's announced its
re-branding to Caesar's in mid-November 2010.
In January 2015, Caesars Entertainment and subsidiary Caesars
Entertainment Operating Company, Inc., announced that holders of
more than 60% of claims in respect of CEOC's 11.25% senior secured
notes due 2017, CEOC's 8.5% senior secured notes due 2020 and
CEOC's 9% senior secured notes due 2020 have signed the Amended and
Restated Restructuring Support and Forbearance Agreement, dated as
of Dec. 31, 2014, among Caesars Entertainment, CEOC and the
Consenting Creditors. As a result, The RSA became effective
pursuant to its terms as of Jan. 9, 2015.
Appaloosa Investment Limited, et al., owed $41 million on account
of 10% second lien notes in the company, filed an involuntary
Chapter 11 bankruptcy petition against CEOC (Bankr. D. Del. Case
No. 15-10047) on Jan. 12, 2015. The bondholders are represented
By Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
LLP.
CEOC and 172 other affiliates -- operators of 38 gaming and resort
properties in 14 U.S. states and 5 countries -- filed Chapter 11
bankruptcy petitions (Bank. N.D. Ill. Lead Case No. 15-01145) on
Jan. 15, 2015. CEOC disclosed total assets of $12.3 billion and
total debt of $19.8 billion as of Sept. 30, 2014.
Delaware Bankruptcy Judge Kevin Gross entered a ruling that the
bankruptcy proceedings will proceed in the U.S. Bankruptcy Court
for the Northern District of Illinois.
Kirkland & Ellis serves as the Debtors' counsel. AlixPartners is
the Debtors' restructuring advisors. Prime Clerk LLC acts as the
Debtors' notice and claims agent. Judge Benjamin Goldgar presides
over the cases.
The U.S. Trustee has appointed an official committee of second
priority noteholders and an official unsecured creditors'
committee.
The U.S. Trustee appointed Richard S. Davis as Chapter 11 examiner.
The examiner retained Winston & Strawn LLP, as his counsel;
Alvarez & Marsal Global Forensic and Dispute Services, LLC, as
financial advisor; and Luskin, Stern & Eisler LLP, as special
conflicts counsel.
* * *
On Jan. 17, 2017, the U.S. Bankruptcy Court for the Northern
District of Illinois confirmed the Third Amended Joint Plan of
Reorganization of Caesars Entertainment Operating Company, Inc. and
its affiliated debtors.
CAMPBELLTON-GRACEVILLE: Wants Dec. 31 Deadline to File Exit Plan
----------------------------------------------------------------
Campbellton-Graceville Hospital Corp. asks the U.S. Bankruptcy
Court for the Northern District of Florida to extend the exclusive
period within which the Debtor may file a plan through and
including Dec. 31, 2017, and the time within which the Debtor may
solicit acceptances to its plan through and including March 1,
2018.
Pursuant to 11 U.S.C. Section 1121(b), the exclusive period within
which only the Debtor may file a plan expires on Sept. 2, 2017, and
the exclusive period within which only the Debtor may solicit
acceptances to a plan expires on Nov. 1, 2017.
The Debtor requests this extension of the exclusive period to
provide it with additional time to negotiate a resolution of
certain issues relating to the sale of the Debtor's assets.
The Debtor submits that cause exists for the extension requested,
assuring the Court that:
a. this case involves complex legal and business issues;
b. the Debtor is paying its post-petition debts as they come
due;
c. the Debtor is in compliance with all of the operating
guidelines of the U.S. Trustee;
d. the Debtor believes that a viable plan will be filed;
e. the Debtor seeks this extension of exclusivity in good
faith, not to pressure or otherwise prejudice the rights
of any of its creditors; and
f. this case has been pending for approximately four months.
The Debtor submits that no creditor or party in interest will be
prejudiced by granting the relief requested. The Debtor's counsel
has communicated with counsel for the Official Committee of
Unsecured Creditors and the U.S. Trustee, who have no objection to
the requested extension.
About Campbellton-Graceville
Campbellton-Graceville Hospital Corporation is a non-profit
corporation established pursuant to the laws of the State of
Florida in 1961 and operates as a not-for-profit 25-bed critical
access hospital serving northern Florida, as well as surrounding
areas in Georgia and Alabama, and had approximately 100 employees.
It offered comprehensive medical care, including emergency
services, general hospitalization, laboratory services, swing bed,
and physical therapy.
Campbellton-Graceville Hospital filed a Chapter 11 bankruptcy
petition (Bankr. N.D.Fla. Case No. 17-40185) on April 17, 2017.
The Hon. Karen K. Specie presides over the case. Berger Singerman
LLP represents the Debtor as counsel.
In its petition, the Debtor estimated $1 million to $10 million in
assets and $1 million to $10 million to $50 million in liabilities.
The petition was signed by Marwill Glade of GlassRatner Advisory
& Capital Group, LLC, chief restructuring officer.
Guy G. Gebhardt, Acting U.S. Trustee for Region 21, on June 8
appointed six creditors to serve on the official committee of
unsecured creditors in the Chapter 11 case. The Committee has
retained Broad and Cassel LLP as counsel.
Judge Karen K. Specie of the U.S. Bankruptcy Court for the Northern
District of Florida in June entered an Order finding that the
appointment of a patient care ombudsman for Campbellton-Graceville
Hospital is not necessary.
CHICAGO EDUCATION BOARD: Moody's Confirms B3 GO Debt Rating
-----------------------------------------------------------
Moody's Investors Service has confirmed the Chicago Board of
Education, IL's B3 general obligation (GO) rating. The Chicago
Board of Education is the primary debt issuer for Chicago Public
Schools (CPS). The rating applies to $5.3 million of general
obligation unlimited tax (GOULT) debt and $140,000 of lease revenue
debt. The outlook has been revised to stable reflecting recent
increases in operating revenue. This action concludes a review for
possible downgrade undertaken on July 6, 2017.
The B3 rating and stable outlook on the district's GOULT debt
reflects the district's financial distress that will likely persist
but not materially worsen in the coming year given new state and
local revenues. The additional revenue should balance the
district's operations in fiscal 2018, but will leave little margin
to rebuild liquidity from its currently extremely weak position.
The district will remain heavily reliant on cash flow borrowing and
likely face budget gaps in future years without further budgetary
adjustments. The rating also reflects high leverage on the tax base
from the debt and pensions of the district and overlapping
governments.
The B3 rating on the district's lease revenue debt reflects the
credit characteristics inherent in the rating on the GOULT debt, as
well as the district's GOULT pledge to make lease payments. The
pledge is not subject to appropriation.
Rating Outlook
The revision of the outlook to stable from rating under review down
reflects recent increases in operating revenue through additional
state aid and enhanced property tax levy authority. These new
revenues should prevent the district's financial position from
further deterioration in fiscal 2018. However, liquidity will
remain precarious, requiring continued market access for cash flow
borrowing to maintain operations.
The outlook also incorporates the district's covered abatement
structure on its GOULT debt, which reduces the likelihood of
default outside of bankruptcy. The outlook is also supported by the
close governance ties to the City of Chicago.
Factors that Could Lead to an Upgrade
Significant improvement in operating liquidity
Continued revenue growth and/or expenditure reductions that enable
the district to stabilize financial operations
Factors that Could Lead to a Downgrade
Emergence of path to bankruptcy, such as the passage of authorizing
legislation from the State of Illinois (Baa3 negative)
Worsening of the district's operating liquidity
Failure to maintain market access for cash flow borrowing
Inability to pay commitments on time and in full, including
repayment of short-term borrowings or required pension
contributions
Legal Security
All of the district's rated debt is secured by its GO unlimited tax
pledge. The majority of the district's rated debt is GO alternate
revenue debt, which is additionally secured primarily by pledged
state aid revenues. An unlimited tax levy is filed with the county
at the time of issuance. The property tax is abated only after
sufficient revenues have deposited with the trustee into a debt
service fund. If the deposit is not made with the trustee, the levy
is extended.
The district's lease revenue debt is secured by an unlimited
property tax levy. Tax receipts from the levy are allocated by the
county collectors directly to the trustee. Lease payments are
non-contingent and are not subject to appropriation.
Use of Proceeds
Not applicable
Obligor Profile
The district is coterminious with the City of Chicago. In fiscal
2017, the district funded 670 schools including district run
traditional schools and 134 charter schools. With an enrollment of
381,349 in fiscal 2017, the district is the third largest in the
nation.
Methodology
The principal methodology used in this rating was US Local
Government General Obligation Debt published in December 2016. The
additional methodology used in the lease-backed rating was Lease,
Appropriation, Moral Obligation and Comparable Debt of US State and
Local Governments published in July 2016.
CHICAGO, IL: Moody's Confirms Ba1 GO Rating; Outlook Negative
-------------------------------------------------------------
Moody's Investors Service has confirmed the Ba1 rating on the City
of Chicago, IL's outstanding general obligation (GO) rating.
Moody's has also confirmed the Ba1 ratings on the city's sales tax
and motor fuel tax bonds. The ratings apply to $7.8 billion of GO
debt, $320 million of sales tax debt and $260 million of motor fuel
tax debt authority. On July 7, Moody's placed Chicago's GO and
related ratings on review for possible downgrade. This action
concludes that review.
The Ba1 incorporates Chicago's large economic base that is
currently performing strongly, but is also very heavily leveraged
by debt and unfunded pensions. The city recently applied its broad
taxing authority to raise new local revenue and accelerate pension
funding, but new taxes remain far from sufficient to arrest growth
in unfunded pension liabilities. The city's new taxes also coincide
with increases enacted by overlapping governments, such as Cook
County (A2 stable) and Chicago Public Schools (CPS; B3 stable), the
latter of which just received expanded taxing authority from the
state. The rating considers long-term operating risks associated
with rising costs and potential limited capacity to further raise
local taxes, as well as the city's very close governance and
political ties to the fiscally weak CPS.
The Ba1 on Chicago's sales tax and motor fuel tax debt
predominantly reflects the absence of legal segregation of pledged
revenue from the city's general operations. This lack of separation
caps the rating at the city's GO rating, despite healthy debt
service coverage.
Rating Outlook
The negative outlook reflects the expectation that immense tax base
leverage and growing costs will remain an ongoing source of
pressure on the City of Chicago that could weaken its long-term
credit quality. Heightened fiscal distress at CPS could also be a
source of credit strain on the city to the extent it results in a
further burden on Chicago taxpayers.
Factors that Could Lead to an Upgrade
Moderation of the city's debt and pension burdens arising from
rapid economic and revenue growth or further budgetary adjustments
that accommodate pension contributions sufficient to arrest growth
in unfunded pension liabilities
The special tax ratings could move above the GO rating if legal
provisions were adopted to completely segregate the collection of
pledged revenue from the city's general operations
Factors that Could Lead to a Downgrade
Slow-down in economic and labor market expansion
Material growth in the city's debt and pension burden that limits
financial flexibility
Fiscal deterioration or growth in leverage of overlapping
governments that places additional pressure on Chicago's tax base
Legal Security
Chicago's GO bonds are secured by a pledge to levy a tax unlimited
as to rate and amount to pay debt service.Chicago's sales tax
revenue bonds are secured by a senior lien on receipts of the
city's local home rule sales tax and the city's share of the state
sales tax.Chicago's motor fuel tax revenue bonds are secured by a
senior lien on 75% of the city's annual allocation of state motor
fuel taxes, plus other pledged city revenue primarily consisting of
dock licensing fees collected from tour boats operating on the
Chicago River.
Use of Proceeds
Not applicable.
Obligor Profile
The City of Chicago, with a current estimated population of 2.7
million, is the largest city in the State of Illinois and the third
most populous city in the US.
Methodology
The principal methodology used in the general obligation rating was
US Local Government General Obligation Debt published in December
2016. The principal methodology used in the special tax ratings was
US Public Finance Special Tax Methodology published in July 2017.
CHIEFTAIN SAND: Plan Exclusivity Period Extended Through Nov. 6
---------------------------------------------------------------
Judge Kevin Gross of the U.S. Bankruptcy Court for the District of
Delaware extended by approximately 90 days the deadline during
which Chieftain Sand and Proppant, LLC and affiliate Chieftain Sand
and Proppant Barron, LLC, have the exclusive right to file a plan
of reorganization and solicit acceptances of that plan through
November 6, 2017 and January 5, 2018, respectively.
The Troubled Company Reporter has previously reported that the
Debtors sought extension in order to preserve their exclusivity in
the event the Plan will not be timely confirmed or unexpected
issues arise in connection therewith, and give them a reasonable
opportunity to complete the prosecution of a chapter 11 plan and
set all the Debtors on the same timeline with regard to the
Exclusivity Periods, which will be beneficial to the Debtors and
their estate stakeholders as a whole.
The Debtors claimed that, since the filing of these cases, they
have made major progress in their cases. Among others, the
Debtors:
(a) obtained entry of a final DIP Order on January 31,
2017;
(b) timely filed their schedules and statements of
financial affairs;
(c) obtained entry of a bar date order;
(d) ran a successful sale process that materially
increased the initial bid for substantially all of
the Debtors' assets by over $30 million and resulted
in entry of a sale order on March 27, 2017; and
(e) on July 6, 2017, filed their Combined Plan and
Disclosure Statement. The hearing to consider
confirmation of the Plan is currently scheduled for
September 14, 2017.
About Chieftain Sand and Proppant, LLC
Chieftain Sand and Proppant, LLC, is a privately owned producer of
hydraulic fracturing sand("Frac Sand"), a monocrystalline sand used
as a proppant (a solid material, typically sand, designed to keep
an induced hydraulic fracture open) to enhance oil and gas product
recovery in petroleum-rich unconventional shale deposits. Frac
Sand is known as a "proppant" because it props the fractures open
by forming a network of pore spaces that allow petroleum fluids to
flow out of the rock and into the well.
Chieftain Sand and Proppant, LLC and affiliate Chieftain Sand and
Proppant Barron, LLC, sought Chapter 11 protection (Bankr. D. Del.
Lead Case No. 17-10064) on Jan. 9, 2017. Judge Kevin Gross presides
over the cases.
The Debtors hired Gibbons P.C. as counsel; Eisner Amper LLP as
financial advisor; Tudor Pickering Holt Co. as investment bankers;
KPMG LLP as auditor; and Donlin, Recano & Company, Inc., as claims
and noticing agent.
* * *
On March 27, 2017, the Bankruptcy Court approved the sale of
substantially all of the assets of Chieftain Sand and Proppant, LLC
to Mammoth Energy Services, Inc., for $35.25 million. Mammoth said
it would finance the purchase price with cash on hand and
borrowings under its revolving credit facility.
CHS/COMMUNITY HEALTH: Moody's Lowers CFR to B3; Outlook Stable
--------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
and Probability of Default Rating of CHS/Community Health Systems,
Inc. (Community) to B3 from B2 and B3-PD from B2-PD, respectively.
Moody's also downgraded the rating on the company's senior
unsecured notes to Caa2 from Caa1. Moody's affirmed the Ba3 rating
on the company's senior secured bank debt and senior secured bonds
given the rating agency's expectation for near-term secured debt
repayment using divestiture proceeds. Moody's also affirmed the
Speculative Grade Liquidity Rating of SGL-3. The outlook on the
revised ratings is stable.
"The downgrade reflects Moody's expectations that operating
headwinds will result in debt to EBITDA being sustained around 7.0x
despite the anticipated leverage benefit from divestitures," stated
Jessica Gladstone, Moody's Senior Vice President.
The affirmation of Community's Speculative Grade Liquidity rating
of SGL-3 reflects Moody's expectation for adequate liquidity over
the next 12-18 months. Moody's anticipates modestly positive free
cash flow before divestiture proceeds, over $800 million of
availability under its revolving credit facility and adequate
cushion under financial covenants. Community has no significant
debt maturities until late 2019.
Following is a summary of Moody's rating actions:
Ratings downgraded:
Corporate Family Rating, to B3 from B2
Probability of Default Rating, to B3-PD from B2-PD
Senior unsecured notes, to Caa2 (LGD5) from Caa1 (LGD5)
Backed senior unsecured shelf, to (P)Caa2 from (P)Caa1
Ratings affirmed:
Speculative Grade Liquidity Rating at SGL-3
Senior secured bank credit facilities at Ba3 (LGD2)
Senior secured notes at Ba3 (LGD2)
Backed senior secured shelf at (P)Ba3
The rating outlook is stable.
RATINGS RATIONALE
Community's B3 Corporate Family Rating reflects Moody's expectation
that the company will continue to operate with very high financial
leverage over the next 12 to 18 months. The rating is also
constrained by Moody's expectation for limited free cash flow
relative to the company's debt as a result of Community's high
interest costs and significant capital requirements of the
business. The ratings are constrained by industry-wide operating
headwinds which will limit operational improvement despite
Community's turnaround initiatives. Supporting the rating is
Community's large scale and strong geographic diversity. Scale will
remain significant despite the company's planned divestiture
program.
Moody's could downgrade the ratings if there is further
deterioration in Community's earnings, if it fails to address
refinancing needs well in advance of 2019 maturities, or if for any
other reason liquidity weakens. Ratings could also be downgraded if
Community's debt to EBITDA is sustained at 7.5x or higher.
Moody's could upgrade the ratings if operational initiatives result
in improved volume growth and margin expansion. If Moody's believes
the company's debt to EBITDA will be sustained around 6.0x, the
ratings could be upgraded. Maintenance of good liquidity and high
certainty around the company's ability to favorably refinance debt
maturities would also support any upgrade. Finally, Moody's would
have to gain additional clarity around the path the company is
pursuing with respect to its review of strategic options.
CHS/Community Health Services, Inc., headquartered in Franklin,
Tennessee, is an operator of general acute care hospitals in
non-urban and mid-sized markets throughout the US. Revenues are
approximately $16 billion.
The principal methodology used in these ratings was that for the
"Business and Consumer Service Industry" published in October 2016.
DIGICERT PARENT: S&P Assigns B Corp Credit Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B' corporate credit rating to
Lehi, Utah-based DigiCert Parent Inc. The outlook is stable.
S&P said, "At the same time, we assigned our 'B+' issue-level
rating to the company's proposed $90 million revolving credit
facility due 2022 and $1.2 billion first lien term loan due 2023.
The '2' recovery rating on the senior secured facilities indicates
our expectation for substantial (70%-90%; rounded estimate of 75%)
recovery in the event of a payment default.
"We also assigned our 'CCC+' issue-level rating to the company's
proposed $300 million second lien term loan due 2024. The '6'
recovery rating on the second lien debt indicates our expectation
for negligible (0%-10%; rounded estimate of 5%) recovery in the
event of a payment default.
"In addition, we raised our corporate credit rating on DigiCert
Inc. to 'B' from 'B-', aligned it with our corporate credit rating
on DigiCert Parent Inc., and removed the corporate credit rating
and our issue-level ratings on the company's existing debt from
CreditWatch. We will withdraw ratings on DigiCert Inc.'s existing
debt once the transaction closes."
"The rating on DigiCert Parent Inc. reflects our view of such
factors as its increased scale following the Symantec Web Security
acquisition, a strong position in the high assurance certificate
space, and highly recurring revenues," said S&P Global Ratings
credit analyst Minesh Shilotri.
The proceeds of the new debt will be partially used to repay
DigiCert's existing debt and to pay $950 million in cash proceeds
to Symantec.
The stable outlook reflects S&P's expectation that DigiCert will be
able to successfully integrate the former Symantec Web Security
business over the next 12 months, while lowering pro forma adjusted
leverage to below 6x and generating positive free cash flow.
DOAKES ENTERPRISES: Taps Michael J. Rose as Legal Counsel
---------------------------------------------------------
Doakes Enterprises, LLC seeks approval from the U.S. Bankruptcy
Court for the Western District of Oklahoma to hire legal counsel in
connection with its Chapter 11 case.
The Debtor proposes to employ Michael J. Rose PC to, among other
things, give legal advice regarding its duties under the Bankruptcy
Code and assist in the preparation of a plan of reorganization.
Michael Rose, Esq., will charge an hourly fee of $350 for his
services.
Mr. Rose disclosed in a court filing that he does not have any
connection with the Debtor or any of its creditors.
The firm can be reached through:
Michael J. Rose, Esq.
Michael J. Rose PC
4101 Perimeter Center Drive, Suite 120
Oklahoma City, OK 73112
Tel: (405) 605-3757
Fax: (405) 605-3758
Email: mrose@coxinet.net
About Doakes Enterprises LLC
Doakes Enterprises, LLC sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. W.D. Okla. Case No. 17-12960) on July 24,
2017. Ternassia Doakes, president, signed the petition.
At the time of the filing, the Debtor disclosed that it had
estimated assets and liabilities of less than $50,000.
DOTS LLC: Asks Court to Dismiss Chapter 11 Case
-----------------------------------------------
Shayna Posses, writing for Bankruptcy Law360, reports that Dots,
LLC, IPC/Dots LLC, and Dots Gift LLC asked the U.S. Bankruptcy
Court for the District of New Jersey to dismiss their Chapter 11
cases after more than three years. According to Law360, the
Debtors said they worked diligently to get as much as they could
out of their assets, but they don't have enough money to repay a
number of claims and fees, let alone confirm a Chapter 11 plan.
About DOTS LLC
Dots LLC is a retailer of fashionable clothing, accessories, and
footwear for price-conscious women. Dots provides missy and plus
size choices to fashion savvy 25 to 35 year old women at
approximately 400 retail stores throughout the Midwest, East, and
South United States. Dots' workforce includes 3,500 individuals in
their stores, distribution center, and corporate headquarters.
Dots, LLC, and its affiliates sought bankruptcy protection under
Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No.
14-11016) on Jan. 20, 2014, to sell some or all of their assets.
Lowenstein Sandler LLP serves as counsel to the Debtors.
PricewaterhouseCoopers LLP is financial advisor and investment
banker. Donlin, Recano & Company, Inc., is the claims and notice
agent.
As of the Petition Date, the Debtors have outstanding secured debt
owed to senior lender Salus Capital Partners, LLC, of which $14.5
million remains woutstanding under a revolving facility and $16.1
million is owed under a term facility. The Debtors also have not
less than $17 million outstanding under subordinated term loan
agreements with Irving Place Capital Partners III L.P. ("IPC") and
related entities. Moreover, the Debtors have aggregate unsecured
debts of $47.0 million. The Debtors disclosed $51,574,560 in
assets and $85,442,656 in liabilities as of the Chapter 11 filing.
Salus, the prepetition senior lender and the DIP lender, is
represented by Morgan, Lewis & Bockius, LLP. The prepetition
subordinated lenders are represented by Okin Hollander & DeLuca,
LLP.
The Company has arranged to borrow $36 million to keep operating as
it reorganizes under court protection.
Otterbourg P.C. serves as counsel to the Official Committee of
Unsecured Creditors; and FTI Consulting, Inc., serves as its
financial advisor.
E. MENDOZA & CO: Wants to File Reorganization Plan by October 12
----------------------------------------------------------------
E. Mendoza & Co., Inc. requests the U.S. Bankruptcy Court for the
District of Puerto Rico for a 45-day extension -- until October 12,
2017 -- of the time to file its disclosure statement and plan of
reorganization together with its exclusivity period.
The Court previously extended the Debtor time to file the Plan and
Disclosure Statement by August 27, 2017. The Debtor, however,
tells the Court that it is still drafting its Disclosure Statement
and Reorganization Plan.
The Debtor contends that the Disclosure Statement and
Reorganization Plan are not yet ready as there is very important
financial and accounting information that needs to be analyzed and
disclosed as part of the Disclosure and Plan. Unfortunately for the
Debtor, its accountants are still analyzing important financial
data related to the Debtor's business. The analysis included, among
other things, the claims analysis of the Puerto Rico Treasury
Department's claims (IVU and municipal taxes). But the
accountant's most important task at this moment is the drafting of
financial statements, which is extremely necessary for the
Disclosure and Plan but most of all for the negotiation with
Condado2 LLC.
The Debtor relates that as recent as last week, it received
important information related to the commercial loans of Condado2
LLC. In view of the situation, the accountants requested to the
Debtor additional 15 to 20 days to finish the financial
statements.
During this period of the Debtor's operations, the Debtor tells the
Court that it has also engaged in conversations with prospective
buyers of one of its properties that might yield between $1.2
million to $1.4 million.
The purchase and sale agreement in relation to that property might
be extremely important in the negotiation process with Condado LLC
and for the funding of priority claims such as prepetition rents
and claims related to the Christmas bonus of employees.
Likewise, on August 10, 2017, the Debtor requested a substantial
consolidation with the case of Eduardo Mendoza Corporation (Bankr.
D. P.R. Case No. 16-06672). The substantial consolidation will
have an important effect in the drafting of the Disclosure
Statement and Plan. But on August 25, Condado 2 LLC requested an
extension of seven days to review the Debtor's request in order to
state its position.
Accordingly, the Debtor claims that it will need an extension of 45
days in order to successfully finish the negotiations and/or
business transactions and include them as part of the Disclosure
and Plan. The Debtor assures the Court that by the end of the
extension period it will be able to present its Disclosure and
Plan.
About E. Mendoza & Co., Inc.
E. Mendoza & Co. Inc., based in San Juan, Puerto Rico, filed a
Chapter 11 petition (Bankr. D.P.R. Case No. 16-06661) on Aug. 22,
2016. The petition was signed by Marta Fernandez Torres, its
secretary. The Debtor estimated $0 to $50,000 in assets and $1
million to $10 million in liabilities at the time of the filing.
The Debtor is represented by Nelson Robles Diaz, Esq., at the
Nelson Robles Diaz Law Offices, PSC.
EXTREME REACH: S&P Cuts CCR to 'B-' on Narrow Margin of Compliance
------------------------------------------------------------------
S&P Global Ratings lowered its corporate credit rating on Extreme
Reach Inc. to 'B-' from 'B'. The rating outlook is negative.
S&P said, "At the same time, we lowered our issue-level rating on
Extreme Reach's first-out revolving facility to 'BB-' from 'BB'.
The '1+' recovery rating remains unchanged, indicating our
expectation for full recovery (100%) of principal in the event of a
payment default.
"We also lowered our issue-level rating on the company's first-lien
term loan to 'B+' from 'BB-'. The '1' recovery rating remains
unchanged, indicating our expectation for very high recovery
(90%-100%; rounded estimate: 95%) of principal in the event of a
payment default.
"In addition, we lowered our issue-level rating on the company's
second-lien term loan to 'CCC+' from 'B-'. The '5' recovery rating
remains unchanged, indicating our expectation for modest recovery
(10%-30%; rounded estimate: 15%) of principal in the event of a
payment default."
The downgrade reflects Extreme Reach's narrow margin of compliance
with its covenants and the increased risk that the company could
violate its leverage covenants if its operating performance remains
weak. S&P said, "Based on our forecasts, we expect the cushion of
compliance to be about 6%-8% in 2017 and 4%-7% in 2018 after steps
down of 0.25x to 4.25x in the first quarter of 2018 and to 4.0x in
the third quarter.
"The negative outlook reflects our expectation that Extreme Reach
will have a thin margin of compliance over the next 12-18 months,
with continued weak pricing and delivery volume trends in its TV ad
delivery business.
"We could lower the corporate credit rating if Extreme Reach's
pricing and delivery volumes decline beyond our base-case scenario
or if the company is unable to achieve enough cost reductions to
maintain current level of EBITDA. This could result in the company
breaching its covenant or lead us to believe that the secular
challenges its business model face will make the capital structure
unsustainable in its current form.
"We could revise the outlook to stable if the company's covenant
cushions improve to comfortably above 15%, either because the
company significantly outperforms our base-case scenario or through
an amendment. We could raise the rating if Extreme Reach is able to
improve the diversity of its revenue mix, particularly in its
talent and digital segments, to offset the secular pressures
affecting the TV ad delivery segment while maintaining adequate
liquidity."
FOUNDATION HEALTHCARE: US Trustee Objects to 1st Amended Plan
-------------------------------------------------------------
BankruptcyData.com reported that the U.S. Trustee assigned to the
Foundation Healthcare case and Healthcare Affiliates filed with the
U.S. Bankruptcy Court separate objections to the Company's First
Amended Joint Chapter 11 Plan of Liquidation. The U.S. Trustee
asserts, "The release and exculpation provisions included in the
Amended Plan should be modified to clarify that they comply with 11
U.S.C. section 524(e), which was never intended to protect
non-debtor parties from 'any negligent conduct that occurred during
the course of the bankruptcy.' In particular, any provisions
releasing, exculpating, or otherwise indemnifying Debtors' board
members should be struck from the Amended Plan. The Amended Plan
includes insiders Richard Zahn, Steven List, and Lorin Patterson as
Released Parties . . . . The Amended Plan includes injunctive
language which permanently enjoins pre-petition creditors from
pursuing claims against Debtors or Released Parties outside the
confirmed Plan. Under the Amended Plan, the Plan Administrator
would distribute any remaining funds to a non-denominational
charity. The United States Trustee recognizes that Debtors will be
extinguished upon completion of the Amended Plan. However,
charitable organizations are not parties to this bankruptcy
proceeding or creditor of the estate. The United States Trustee
requests that the confirmation order include language providing
that the Plan Administrator shall timely file post-confirmation
operating reports with the Court until the case is closed,
dismissed, or converted."
About Foundation Healthcare
University General Hospital LLC is a 69-bed health care facility
located at 7501 Fannin Street, Suite 100 Houston, Texas. Prior to
its closure in January 2017, University General Hospital offered a
full array of equipment and services including inpatient and
outpatient medical treatments and surgeries.
Foundation Healthcare Inc., a publicly traded Oklahoma corporation,
was in the business of owning and managing facilities which
operated in the surgical segment of the healthcare industry. It
has ceased to conduct business operations and has no employees.
Foundation Healthcare currently only has a contracted interim Chief
Financial Officer and a contracted Chief Restructuring Officer, and
one part time assistant.
University General Hospital previously sought bankruptcy protection
(Bankr. S.D. Tex. Case No. 15-31097). The case was filed on Feb.
27, 2015. Foundation HealthCare completed its acquisition of
University General Hospital in January 2016. Foundation Healthcare
purchased the facility for $33 million in a court-approved sale.
University General Hospital, doing business as Foundation Surgical
Hospital of Houston, and its affiliate Foundation Healthcare filed
Chapter 11 petitions (Bankr. N.D. Tex. Case Nos. 17-42570 and
17-42571) on June 21, 2017. The petitions were signed by Richard
Zahn, manager. The cases are jointly administered before Judge
Russell F. Nelms with Foundation Healthcare's case as the lead.
The Debtors are represented by Vickie L. Driver, Esq., at Husch
Blackwell LLP. The Debtors hire Michael S. Miller of Ankura
Consulting Group, LLC, as chief restructuring officer. The Debtors
employ Eide Bailly LLP, as accountant and Donlin, Recano & Company,
Inc., as their claims and noticing agent.
At the time of filing, University General disclosed $1 million to
$10 million in assets and $1 million to $50 million in liabilities.
Foundation Healthcare disclosed $1 million to $10 million in
assets and liabilities.
GCA SERVICES: S&P Affirms Then Withdraws 'B' Corp Credit Rating
---------------------------------------------------------------
S&P Global Ratings affirmed its 'B' long-term corporate credit
rating on GCA Services Group Inc. The outlook is negative.
ABM Industries (not rated) has acquired GCA Services Group Inc. and
repaid all of its debt. S&P said, "We base our rating on GCA on its
group status within ABM and on GCA's creditworthiness. However, we
do not have enough information to accurately assess the
creditworthiness of ABM."
"We subsequently withdrew our 'B' corporate credit rating on GCA at
the company's request. At the same time, we are withdrawing our 'B'
issue-level and '3' recovery rating on the company's $615 million
first-lien facilities (including the $100 million revolver due 2021
and $515 million term loan due 2023), and the 'CCC+' issue-level
and '6' recovery rating on the company's $160 million second-lien
term loan due 2024. As the company's debts have being repaid in
full following the completion of its acquisition by ABM
Industries."
GENTLEPRO HOME: May Use Can Capital's Cash Collateral Until Nov. 16
-------------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois has
entered an interim order authorizing Gentlepro Home Health Care,
Inc., to use cash collateral until Nov. 16, 2017, at 10:00 a.m., at
which time a final hearing on the cash collateral use will take
place.
The Debtor acknowledges that there exists a valid lien upon the
assets of the Debtor as of the date of the filing of the petition
and that the cash proceeds thereof by Can Capital, who holds a
security interest in substantially all the assets of the Debtor by
way of a lien duly filed of which the amount of $79,014.32 was
still due and owing as of the Petition Date.
The Secured Creditor will be secured by a lien to the same extent,
priority and validity as existed prior to the Petition Date. The
Secured Creditor will receive a security interest in and
replacement lien upon all of the Debtor's now existing or hereafter
acquired property, to the extent actually used and for the
diminution, if any, in the value of the Secured Creditors'
collateral securing all indebtedness of the Debtor to the Secured
Creditor, which replacement lien will be the same lien as existed
as the pre-petition valid liens of record.
The Debtor will make interim monthly payments to the Secured
Creditor on or before the 15th of each month in the amount of
$1,400 as adequate protection of the Secured Creditor's security
interest in the Debtor's assets.
A copy of the Order is available at:
http://bankrupt.com/misc/ilnb17-11377-51.pdf
About Gentlepro Home Health Care
Gentlepro Home Health Care, Inc., provides home health care
services, including nursing and rehabilitation therapy to
individuals throughout the Chicagoland area. Due to complications
and delay in receiving Medicare payments, and lawsuits initiated by
two of its creditors, it was forced to file bankruptcy.
Gentlepro filed a Chapter 11 petition (Bankr. N.D. Ill. Case No.
17-11377) on April 11, 2017. Edith Querubin, president, signed the
petition. At the time of filing, the Debtor estimated assets of
less than $100,000 and liabilities of less than $500,000.
The case is assigned to Judge Janet S. Baer.
The Debtor is represented by Joshua D. Greene at the firm of
Springer Brown, LLC.
GENTLEPRO HOME: May Use IRS's Cash Collateral Until Nov. 16
-----------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Illinois has
entered an interim order authorizing Gentlepro Home Health Care,
Inc., to use cash collateral until Nov. 16, 2017, at 10:00 a.m., at
which time a final hearing will take place.
The Internal Service Revenue will be secured by a lien to the same
extent, priority and validity as existed prior to the Petition
Date. The IRS will receive a security interest in and replacement
lien upon all of the Debtor's now existing or hereafter acquired
property, to the extent actually used for the diminution, if any,
in the value of the IRS's collateral securing all indebtedness of
the Debtor to the IRS which replacement lien will be the same lien
as existed as the prepetition valid liens of record.
The Debtor will make interim monthly payments to the IRS on or
before the 15th of each month in the amount of $1,500 as adequate
protection of the IRS's security interest in the Debtor's assets.
A copy of the Order is available at:
http://bankrupt.com/misc/ilnb17-11377-52.pdf
About Gentlepro Home Health Care
Gentlepro Home Health Care, Inc., provides home health care
services, including nursing and rehabilitation therapy to
individuals throughout the Chicagoland area. Due to complications
and delay in receiving Medicare payments, and lawsuits initiated by
two of its creditors, it was forced to file bankruptcy.
Gentlepro filed a Chapter 11 petition (Bankr. N.D. Ill. Case No.
17-11377) on April 11, 2017. Edith Querubin, president, signed the
petition. At the time of filing, the Debtor estimated assets of
less than $100,000 and liabilities of less than $500,000.
The case is assigned to Judge Janet S. Baer.
The Debtor is represented by Joshua D. Greene at the firm of
Springer Brown, LLC.
GREATER GOOD HOPE: Taps Kaplan & Partners as Legal Counsel
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Greater Good Hope Baptist Church, Inc. seeks approval from the U.S.
Bankruptcy Court for the Western District of Kentucky to hire legal
counsel in connection with its Chapter 11 case.
The Debtor proposes to employ Kaplan & Partners LLP to, among other
things, give legal advice regarding its duties under the Bankruptcy
Code and assist in the preparation and implementation of a
bankruptcy plan.
The firm has agreed to reduce its hourly fee to $175 for the
services of its attorneys and $50 for paralegal services. It
received a retainer in the sum of $17,850, which includes payment
of the filing fee.
Charity Neukomm, Esq., disclosed in a court filing that the firm is
a "disinterested person" as defined in section 101(14) of the
Bankruptcy Code.
Kaplan & Partners can be reached through:
Charity B. Neukomm, Esq.
James E. McGhee, Esq.
Kaplan & Partners LLP
710 West Main Street, Fourth Floor
Louisville, KY 40202
Tel: 502-540-8285
Fax: 502-540-8282
Email: cneukomm@kplouisville.com
Email: jmcghee@kplouisville.com
About Greater Good Hope Baptist Church
Greater Good Hope Baptist Church, Inc. owns a church located at 840
South 26th Street, Louisville, Kentucky, valued at $300,000.
The Debtor sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. W.D. Kentucky Case No. 17-32758) on August 28, 2017.
Nann L. Easton, its chairman, signed the petition.
At the time of the filing, the Debtor disclosed $324,021 in assets
and $1.06 million in liabilities.
Judge Alan C. Stout presides over the case.
HARD ROCK EXPLORATION: Case Summary & Top Unsecured Creditors
-------------------------------------------------------------
Lead Debtor: Hard Rock Exploration, Inc.
1244 Martins Branch Road
Charleston, WV 25312
Type of Business: Founded in 2003, Hard Rock Exploration, Inc.,
and its affiliates provide oil and gas
exploration and production services in Virginia
and West Virginia. Hard Rock focuses on
drilling horizontal wells.
Chapter 11 Petition Date: September 5, 2017
Debtor affiliates that simultaneously filed Chapter 11 petitions:
Debtor Case No.
------ --------
Hard Rock Exploration, Inc. 17-20459
Caraline Energy Company 17-20461
Brothers Realty, LLC 17-20462
Blue Jacket Gathering, LLC 17-20463
Blue Jacket Partnership 17-20464
Court: United States Bankruptcy Court
Southern District of West Virginia (Charleston)
Judge: Hon. Frank W. Volk
Debtors' Counsel: Christopher S. Smith, Esq.
HOYER, HOYER & SMITH, PLLC
22 Capitol Street
Charleston, WV 25301
Tel: 344-9821
Fax: 304-344-9519
E-mail: chris@hhsmlaw.com
- and -
Taft A. McKinstry, Esq.
FOWLER BELL PLLC
300 W. Vine Street, Suite 600
Lexington, KY 40507-1660
E-mail: TMcKinstry@Fowlerlaw.com
Hard Rock's estimated assets: $10 million to $50 million
Hard Rock's estimated debt: $10 million to $50 million
Caraline Energy's estimated assets: $10 million to $50 million
Caraline Energy's estimated debt: $10 million to $50 million
The petitions were signed by James L. Stephens, president.
Full-text copies of the petitions are available for free at:
http://bankrupt.com/misc/wvsb17-20459.pdf
http://bankrupt.com/misc/wvsb17-20461.pdf
A. Hard Rock Exploration's List of 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Bakers Farm Business Debt $9,894
Brothers Realty, LLC Building Rent $264,200
1244 Martins Branch Road Payments
Charleston, WV 25312
Capital Energy, LLC Business Debt $5,580
Contractor
Davis, Edna Business Debt $10,771
Rental/Lease
Ellis & Ellis, PLLC Business Debt- $6,000
Accounting Services
Express 4X4 Truck Rental Business Debt $3,163
Harvey, Melvin Business Debt- $4,097
Contract Labor
Liberty Mutual Insurance Business Debt- $17,127
Insurance
Lipscomb, Betty Leah Business Debt- $4,665
Rental/Lease
Longfellow, Wayne Business Debt- $3,580
Rental/Lease
M2M Data Corporation Business Debt- $41,111
Well Monitoring
Service
Mark West Hydrocarbon, LLC Business Debt- $30,603
Gas Transporation
Service
Meadows, Rosalie E. Business Debt- $6,775
Rental/Lease
Pl Star Communications, LLC Business Debt- $2,958
Well Monitoring
Service
Purchase Power Business Debt- $2,908
Rental/Lease
Stand Energy Corporation Business Debt $232,500
Steptoe & Johnson PLLC Business Debt- $25,252
Legal Services
Suttle & Stalnaker Business Debt- $57,520
Accounting Services
Wild Well Control, Inc. Business Debt- $3,600
Performance Drilling
WV State Tax Department Taxes $35,579
B. Caraline Energy's List of 17 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Archrick Partners Operating, LLC Business Debt $24,527
Capital Energy, LLC Business Debt $19,080
DNOW, LP Business Debt $2,053
Dominion Energy Business Debt $75
Ellis & Ellis, PLLC Business Debt- $8,000
Accounting Services
Frontier Business Debt- $96
Utilities
Harris Oil Company, Inc. Business Debt $2,601
J & M Resources Business Debt $5,000
J W Williams, Inc. Business Debt $656
Mon Power Business Debt $65
MRC Global (US), Inc. Business Debt $1,000
Power Parts Supply Business Debt $89,402
R & R Automation, LLC Business Debt $652
Spirit Services, Inc. Business Debt $2,365
Suttle & Stalnaker Business Debt- $1,000
Certified Public Accounting Services
Accountants
Teays Valley Engineering Business Debt $27,845
Time Critical Decisions, LLC Business Debt $12
HD SUPPLY: S&P Gives 'BB+' Ratings on B-3 and B-3 Term Loans
------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '2'
recovery ratings to HD Supply Inc.'s $535 million term B-3 loan due
2021 and its $546 million term B-4 loan due 2023. The '2' recovery
rating indicates S&P's expectation for substantial (70% to 90%,
rounded estimate: 70%) recovery in the event of a payment default.
S&P said, "At the same time, we raised our issue-level ratings on
the company's term B-1 and term B-2 loans to 'BB+' from 'BB' with a
'2' recovery rating, removed the ratings from CreditWatch (where
they were placed with positive implications on Aug. 17, 2017), and
subsequently withdrew them. The term B-1 and B-2 loans were
refinanced with the new term B-3 and B-4 loans. The terms of the
B-3 and B-4 loans are substantially the same as those of the term
B-1 and B-2 loans, apart from certain technical amendments to the
existing credit agreement, including an increase in the restricted
payments basket.
"The improved recovery prospects for term loan lenders follows the
repayment of the company's $1.25 billion first-lien senior secured
notes due 2021 using the proceeds from the recent sale of its
Waterworks business.
"All of our other ratings on HD Supply, including our 'BB'
corporate credit rating, remain unchanged."
RECOVERY ANALYSIS
S&P said, "In our simulated default scenario, we envision the
company defaulting in 2022 following an unexpected economic
downturn and sustained weakness in the industrial and construction
markets, which leads to a significant decrease in sales volumes.
The effect of the overall muted recovery in these markets results
in pricing pressure, margin compression, low profitability, and
strained cash flow. We also assume a high degree of leverage
limiting HD Supply's financial flexibility and liquidity.
"We valued the company on a going-concern basis using a 6x multiple
on our projected emergence EBITDA of about $300 million."
Simulated default assumptions
-- Simulated year of default: 2022
-- Emergence EBITDA: $297 million
-- Multiple: 6x
Simplified waterfall
-- Gross recovery value: $1,779.6 million
-- Net recovery value after administrative expenses (5%): $1,690.7
million
-- Valuation split (obligors/nonobligors): 95%/5%
-- Estimated priority asset-backed lending facility claims: $919.1
million
--Recovery expectations: 90%-100%; rounded estimate:95%
-- Collateral value for first-lien secured creditors: $742
million
-- Secured first-lien debt claims: $1,056.3 million
--Recovery expectations: 70%-90%, rounded estimate: 70%
-- Total value available for unsecured claims: $29.6 million
-- Total unsecured claims: $1,028.8 million
--Recovery expectations: 0%-10%, rounded estimate: 0%
Note: all debt amounts include six months' prepetition interest.
RATINGS LIST
HD Supply Inc.
Corporate credit rating BB/Stable/--
Ratings Assigned
HD Supply Inc.
Senior secured
$535 mil. term B-3 loan due 2021 BB+
Recovery rating 2(70%)
$546 mil. term B-4 loan due 2023 BB+
Recovery rating 2(70%)
Upgraded; Off CreditWatch; Recovery Rating Revised
To From
HD Supply Inc.
Senior secured
Term loan B-1 and B-2 BB+ BB/Watch Pos
Recovery rating 2(70%) 3(50%)
Withdrawn
HD Supply Inc.
Senior secured
Term loan B-1 and B-2 NR BB+
Recovery rating NR 2(70%)
HUMANIGEN INC: CEO Cameron Durrant Named Interim CFO
----------------------------------------------------
Dr. Cameron Durrant, age 56, the current chairman and chief
executive officer of Humanigen, Inc., has been appointed as the
Company's interim chief financial officer, until a new chief
financial officer is in place. Dr. Durrant succeeds David L.
Tousley, who resigned as the Company's interim chief financial
officer effective Aug. 11, 2017. Dr. Durrant does not have any
direct or indirect material interest in any transaction with the
Company required to be disclosed pursuant to Item 404(a) of
Regulation S-K, the Company said in a Form 8-K report filed with
the Securities and Exchange Commission.
About Humanigen, Inc.
Humanigen, Inc. (OTCQB: HGEN), formerly known as KaloBios
Pharmaceuticals, Inc. -- http://www.humanigen.com/-- is a
biopharmaceutical company focused on advancing medicines for
patients with neglected and rare diseases through innovative,
accelerated business models. Lead compounds in the portfolio are
benznidazole for the potential treatment of Chagas disease in the
U.S., and the proprietary monoclonal antibodies, lenzilumab and
ifabotuzumab. Lenzilumab has potential for treatment of various
rare diseases, including hematologic cancers such as chronic
myelomonocytic leukemia (CMML) and juvenile myelomonocytic leukemia
(JMML).
KaloBios filed a voluntary petition for bankruptcy protection under
Chapter 11 of Title 11 of the United States Bankruptcy Code (Bankr.
D. Del. Case No. 15-12628) on Dec. 29, 2015.
The Company was represented by Eric D. Schwartz of Morris, Nichols,
Arsht & Tunnell. KaloBios emerged from Chapter 11 bankruptcy six
months later.
KaloBios amended its Amended and Restated Certificate of
Incorporation to change its corporate name to Humanigen, Inc.,
effective Aug. 7, 2017.
The Company has acquired the rights from Savant Neglected Diseases
LLC to develop benznidazole for the treatment of Chagas disease.
The Company reported a net loss of $27.01 million in 2016,
following a a net loss of $35.37 million in 2015.
As of June 30, 2017, Humanigen had $1.92 million in total assets,
$16.61 million in total liabilities and a total stockholders'
deficit of $14.69 million.
HORNE LLP, in Ridgeland, Mississippi, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2016, noting that the Company has recurring losses
from operations that raise substantial doubt about its ability to
continue as a going concern.
IMH FINANCIAL: Incurs $4.32 Million Net loss in Second Quarter
--------------------------------------------------------------
IMH Financial Corporation filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
attributable to common shareholders of $4.32 million on $1.05
million of total revenue for the three months ended June 30, 2017,
compared to a net loss attributable to common shareholders of $5.66
million on $1.32 million of total revenue for the three months
ended June 30, 2016.
For the six months ended June 30, 2017, IMH Financial reported a
net loss attributable to common shareholders of $3.48 million on
$2.24 million of total revenue compared to a net loss attributable
to common shareholders of $11.51 million on $2.84 million of total
revenue for the six months ended June 30, 2016.
As of June 30, 2017, IMH Financial had $89.56 million in total
assets, $23.50 million in total liabilities, $33.47 million in
redeemable convertible preferred stock, and $32.59 million in total
stockholders' equity.
As of June 30, 2017, the Company's accumulated deficit aggregated
$679.9 million primarily as a result of previous provisions for
credit losses recorded relating to the decrease in the fair value
of the collateral securing its legacy loan portfolio and impairment
charges relating to the value of real estate owned assets acquired
primarily through foreclosure, as well as on-going net operating
losses resulting from the lack of income-producing assets, and the
high cost of its previous debt financing. Beginning in 2008, the
Company experienced significant defaults and foreclosures in its
mortgage loan portfolio due primarily to the erosion of the U.S.
and global real estate and credit markets during those periods. As
a result, since that time the Company has been focused on enforcing
its rights under its loan documents, working to repossess the
collateral properties underlying those loans for purposes of
disposing of or developing such assets, and pursuing recovery from
guarantors under such loans.
The Company's liquidity plan has included obtaining additional
financing, selling mortgage loans, and selling the majority of its
legacy real estate assets. The Company secured various financings
between 2011 and 2016 which, along with proceeds from asset sales,
have been its primary sources of working capital. In February
2017, the Company sold its Sedona hotels, generating net cash of
$42.2 million after payment of expenses and related debt.
As of June 30, 2017, the Company had (i) cash and cash equivalents
of $39.7 million and (ii) held for sale REO assets with a carrying
value of $14.6 million. The Company continues to evaluate
potential disposition strategies for its remaining REO assets.
"We require liquidity and capital resources for our general working
capital needs, including maintenance, development costs and capital
expenditures for our operating properties and non-operating REO
assets, professional fees, general and administrative operating
costs, loan enforcement costs, financing costs, debt service
payments, dividends to our preferred shareholders, as well as to
acquire our target assets," said the Company in the report. "We
expect our primary sources of liquidity over the next twelve months
to consist of our current cash, mortgage loan interest income from
anticipated originations, revenues from remaining operating
properties, revenues from management of the Sedona hotels, proceeds
from borrowings, and proceeds from the disposition of our existing
loan and REO assets held for sale. We believe that our cash and
cash equivalents coupled with our operating and investing revenues,
as well as proceeds that we anticipate from the disposition of our
loans and real estate held for sale will be sufficient to allow us
to fund our operations for a period of at least one year from the
date these condensed consolidated financial statements are issued.
"While we have been successful in securing financing through June
30, 2017 to provide adequate funding for working capital purposes,
which has been supplemented by proceeds from the sale of certain
REO assets and mortgage receivable collections, there is no
assurance that we will be successful in selling our remaining loan
and REO assets in a timely manner or in obtaining additional or
replacement financing, if needed, to sufficiently fund future
operations, repay existing debt or to implement our investment
strategy. Our failure to generate sustainable earning assets, and
successfully liquidate a sufficient number of our loans and REO
assets may have a material adverse effect on our business, results
of operations and financial position."
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/6twIW7
About IMH Financial
Scottsdale, Ariz.-based IMH Financial Corporation was formed from
the conversion of IMH Secured Loan Fund, LLC, or the Fund, a
Delaware limited liability company, on June 18, 2010. The
conversion was effected following a consent solicitation process
pursuant to which approval was obtained from a majority of the
members of the Fund to effect the Conversion Transactions and
involved (i) the conversion of the Fund from a Delaware limited
liability company into a Delaware corporation named IMH Financial
Corporation, and (ii) the acquisition by the Company of all of the
outstanding shares of the manager of the Fund Investors Mortgage
Holdings Inc., or the Manager, as well as all of the outstanding
membership interests of a related entity, IMH Holdings LLC, or
Holdings on June 18, 2010.
IMH Financial reported a net loss attributable to common
shareholders of $12.25 million on $33.68 million of total revenue
for the year ended Dec. 31, 2016, compared to a net loss
attributable to common shareholders of $18.90 million on $32.49
million of total revenue for the year ended Dec. 31, 2015.
INTERLEUKIN GENETICS: Suspends Filing of Reports with SEC
---------------------------------------------------------
Interleukin Genetics, Inc. filed a Form 15 with the Securities and
Exchange Commission notifying the termination of registration of
all authorized preferred and common stock of the Company under
Section 12(g) of the Securities Exchange Act of 1934. As a result
of the Form 15 filing, the Company is not anymore obliged to file
periodic periodic reports with the SEC.
About Interleukin Genetics
Interleukin Genetics, Inc. (OTCQB: ILIU) --
http://www.ilgenetics.com/-- develops and markets proprietary
genetic tests for chronic inflammatory diseases and health-related
conditions, with significant expertise in metabolism and
inflammation. Lead products include the Company's proprietary
cardiovascular test to guide treatment of high risk patients; its
proprietary ILUSTRA Inflammation Management Program; and its
Inherent Health line of genetic tests. Interleukin is
headquartered in suburban Boston and operates an on-site DNA
testing laboratory certified under the Clinical Laboratory
Improvement Amendments (CLIA).
Interleukin Genetics reported a net loss of $7.4 million on $2.5
million total revenue for the year ended Dec. 31, 2016, following a
net loss of $7.89 million on $1.44 million of total revenue in
2015, and a net loss of $6.33 million on $1.81 million of total
revenue in 2014.
As of March 31, 2017, Interleukin had $1.90 million in total
assets, $6.91 million in total liabilities, and a total
stockholders' deficit of $5.01 million.
Grant Thornton LLP issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31, 2016.
It said, "The Company has incurred recurring losses and negative
cash flows from operations and as of Dec. 31, 2016 the Company's
current liabilities exceeded its current assets. These conditions,
among others, raise substantial doubt about the Company's ability
to continue as a going concern."
JHL INDUSTRIAL: Has Court's Nod to Use Cash Collateral
------------------------------------------------------
The Hon. Joseph G. Rosania, Jr., of the U.S. Bankruptcy Court for
the District of Colorado has authorized JHL Industrial Services,
LLC, to use the Colorado Department of Revenue cash collateral
during the pendency of this Chapter 11 bankruptcy case.
As reported by the Troubled Company Reporter on Aug. 14, 2017, the
Debtor sought court permission to continue the use of cash
generated from post-petition construction contracts and
post-petition accounts receivable during the pendency of this case
in exchange for monthly payments to the Colorado Department of
Revenue. The Colorado Department of Revenue and the Debtor have
reached an agreement regarding the Debtor's continued use of the
Colorado Department of Revenue's alleged cash collateral and seek
Court approval of their stipulated order authorizing the Debtor's
use of cash collateral. Old Republic Surety Company and Wells
Fargo Bank, National Association, also hold prepetition liens
against certain property of the Debtor.
The Debtor will not and may not pay any prepetition debts or
obligations of the Debtor or its estate without court authority.
The Debtor will deposit into the Debtor's debtor-in-possession
accounts all revenues and proceeds of every type derived from the
operation of the Debtor's business. No business proceeds or funds
of any type of the Debtor will be deposited or transferred into an
account other than the DIP accounts without court authority.
The Debtor is required to pay all post-petition federal and state
payroll, withholding, sales, use, personal property, real property
and other taxes and assessments of any kind when due and owing
under applicable law.
To provide the Colorado Department of Revenue with the adequate
protection, the Debtor will pay the Colorado Department of Revenue
$25,148 over 58 months with 7% interest.
The Debtor's right to use the Colorado Department of Revenue cash
collateral will terminate on the earlier of (i) conversion of the
Debtor's Chapter 11 case to a Chapter 7 case; (ii) the Debtor's
failure to comply with the requirements; (iii) depositing any
revenues or proceeds of the Debtor of any kind into any account
other than the DIP Accounts; (iv) the Debtor's failure to timely
file or pay any post-petition federal or state payroll,
withholding, sales, use, personal property, real property or other
taxes and assessments of any kind by the date last due without
penalty, or (v) the Debtor's failure to comply with the reporting
requirements.
A copy of the Order is available at:
http://bankrupt.com/misc/cob17-14141-85.pdf
About JHL Industrial Services
JHL Industrial Services, LLC, which conducts business under the
name Platt Rogers Company -- http://www.plattrogers.com/--
provides niche services including custom fuel system installation,
civil construction, integrated agricultural feed and water
solutions, piping process, new construction and renovation of
facilities and plant, demolition, environmental construction, fuel
distribution, fuel management and energy economizing and
alternative energies distribution system installation.
JHL Industrial Services, based in Lakewood, Colorado, filed a
Chapter 11 petition (Bankr. D. Colo. Case No. 17-14141) on May 5,
2017. In its petition, the Debtor estimated $505,500 in total
assets and $1.02 million in total liabilities. The petition was
signed by Jason Grubb, managing member.
The Hon. Joseph G. Rosania Jr. presides over the case.
David Warner, Esq., at Sender Wasserman Wadsworth, P.C., serves as
bankruptcy counsel to the Debtor.
KIWA BIO-TECH: Posts $5.01 Million Net Income in 2nd Quarter
------------------------------------------------------------
Kiwa Bio-Tech Products Group Corporation filed with the Securities
and Exchange Commission its quarterly report on Form 10-Q reporting
net income of $5.01 million on $5.68 million of revenue for the
three months ended June 30, 2017, compared to net income of
$181,975 on $0 of revenue for the three months ended June 30,
2016.
For the six months ended June 30, 2017, Kiwa Bio-Tech reported net
income of $5.32 million on $8.82 million of revenue compared to net
income of $238,105 on $0 of revenue for the same period a year
ago.
As of June 30, 2017, Kiw Bio-Tech had $12.58 million in total
assets, $10.85 million in total liabilities, all current, and $1.73
million in total stockholders' equity.
Since inception of the Company's ag-biotech business in 2002, it
has relied on the proceeds from the sale of its equity securities
and loans from both unrelated and related parties to provide the
resources necessary to fund its operations and the execution of its
business plan. During the six months ended June 30, 2017, the
advances from related parties, net of repayment by the Company to
related parties, was $83,798. As of June 30, 2017, the Company's
current assets exceeded current liabilities by $1,474,595,
representing a current ratio of 1.13. Comparably, as of Dec. 31,
2016, its current liabilities exceeded current assets by
$5,729,622, denoting a current ratio of 0.445.
As of June 30, 2017, and Dec. 31, 2016, the Company had cash of
$71,554 and $13,469, respectively. During the six months ended
June 30, 2017, the Company's operations used cash of $2,199,087 as
compared with $148,931 used in the same period of 2016. Cash was
mainly used for working capital for public company operation.
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/SbDqIw
About Kiwa Bio-Tech
Kiwa Bio-Tech Products Group Corporation develops, manufactures,
distributes and markets bio-technological products for agriculture.
The Company has acquired technologies to produce and market
bio-fertilizer. The Company has developed over six bio-fertilizer
products with bacillus spp and/or photosynthetic bacteria as its
ingredients. The Company's products contain ingredients of both
photosynthesis and bacillus bacteria which are protected by
patents.
Kiwa Bio-Tech reported net income of $963,296 for the year ended
Dec. 31, 2016, following net losses of $677,358 for the year ended
Dec. 31, 2015.
DYH & Company issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31, 2016.
The auditors said the Company's current liabilities substantially
exceeded its current assets by $5,729,622 at Dec. 31, 2016.
Although the Company reported net income approximately $963,296 for
its fiscal year ended Dec. 31, 2016, it had an accumulated deficit
of $19,489,400 as of Dec. 31, 2016. These circumstances, among
others, raise substantial doubt about the Company's ability to
continue as a going concern.
LAGO RESORT: S&P Lowers CCR to 'CCC+', On CreditWatch Negative
--------------------------------------------------------------
S&P Global Ratings lowered its corporate credit rating on Tyre,
N.Y.-based Lago Resort & Casino to 'CCC+' from 'B-', and placed it
on CreditWatch with negative implications. S&P also lowered all
issue-level ratings one notch in line with the downgrade and placed
them on CreditWatch with negative implications.
S&P said, "The downgrade and CreditWatch listing reflect our view
that there is an increasing likelihood that EBITDA at del Lago
Resort & Casino in the first full year of operations may not ramp
up to a level that fully covers cash fixed charges (including
interest expense, amortization, and modest maintenance capital
expenditures) as well as the risk of a near-term covenant default.
Lago has depleted its interest reserve, and must rely solely on
internally generated cash flow, cash balances, and availability
under its $15 million revolving credit facility to fund fixed
charges. As a result, liquidity could be insufficient if EBITDA
generation does not begin ramping up over the next few quarters to
fully cover cash needs. We believe the ability to pay in kind a
portion of the interest expense on its second-lien term loan
provides some flexibility to allow the property to further ramp up
operations.
"In resolving the CreditWatch listing, we plan to assess Lago's
current liquidity position and its ability to ramp up cash flow
generation to a level sufficient to fully cover cash fixed charges
following the July 2017 opening of its hotel. We also plan to
evaluate Lago's plans to address possible covenant violations with
its lending group and the potential for additional support from its
equity owners to cure covenant violations or for additional
liquidity support. As part of the CreditWatch resolution, we intend
to update our valuation assumptions following the opening of the
hotel, and reassess recovery prospects for lenders."
LANDRY'S INC: S&P Affirms 'B' CCR on Consolidation of Operations
----------------------------------------------------------------
S&P Global Ratings affirmed its 'B' corporate credit rating on
Houston-based restaurant operator Landry's, Inc. The outlook is
stable.
Landry's will be combined with Golden Nugget, with Golden Nugget
becoming the surviving entity. Simultaneously with the combination,
Golden Nugget will assume Landry's debt. S&P expects to withdraw
the corporate credit rating on Landry's when the transaction
closes. Subsequently, S&P expects Golden Nugget to be renamed
Landry's Inc. at some point in the future.
S&P said, "At the same time, we assigned a 'CCC+' issue-level
rating and '6' recovery rating to the proposed $670 million
subordinated notes due 2025, which will be issued by Golden Nugget
Inc. The '6' recovery rating reflects our expectation for
negligible recovery (0% to 10%) in the event of default. Golden
Nugget will use the net proceeds from this offering to refinance
its existing debt at transaction close.
"Our ratings Landry's debt are unaffected by the proposed add-on.
Pro forma for the subordinated debt issuance and the add-on, the
new capital structure will consist of a $2.6 billion senior secured
credit facility, $1.3 billion senior unsecured notes due 2024, and
the $670 million subordinated notes maturing in 2025. The senior
secured credit facility consists of a $200 million revolving credit
facility maturing in 2021 and a $2.4 billion first-lien term loan
maturing in 2023.
"The affirmation reflects our view that pro forma for the business
combination and dividend, leverage will increase to about 6.8x. We
expect it to decline to about 6.3x by fiscal year-end 2018 because
of EBITDA growth in the gaming segment and modest debt reduction,
partly offset by some performance pressures at the restaurant
operations due to higher labor and commodity costs. We expect the
company to use its excess cash flows to reduce debt beyond
scheduled amortization.
"The stable outlook incorporates our expectation that the company
will improve credit measures over the next couple of years from
very highly leveraged levels. We expect the company to continue
generate good levels of cash flows, with excess funds used to
reduce debt.
"We could lower the ratings if competitive pressures in the
restaurant and entertainment industry hurt the company's guest
traffic and profitability, causing leverage to increase beyond the
7x area on a sustained basis. Leverage could also increase to this
threshold if the company pursues meaningful debt-financed dividend
or acquisitions. We calculate that about $750 million of
incremental debt and EBITDA in 2018 would lead to debt leverage
increasing to this downgrade threshold. Leverage could also reach
this level if there is prolonged impact from weather-related events
beyond our expectations, or if there is an economic slowdown in any
of the company's key geographic markets.
"We could raise the ratings if the company reduces its debt and
improves profitability resulting in leverage sustained below the
5x. For an upgrade we would also need to believe that the
likelihood of material debt-funded dividends or acquisitions was
low."
LEHMAN BROTHERS UK: Taps Epiq as Administrative Agent
-----------------------------------------------------
Lehman Brothers U.K. Holdings (Delaware) Inc. and Lehman
Pass-Through Securities Inc. seek approval from the U.S. Bankruptcy
Court for the Southern District of New York to hire Epiq Bankruptcy
Solutions, LLC as administrative agent.
The firm will provide bankruptcy administrative services, which
include assisting the Debtors in the solicitation, balloting and
tabulation of votes; preparing an official ballot certification and
reports in support of confirmation of a Chapter 11 plan; providing
a confidential data room; and managing the distributions to
creditors.
The hourly rates charged by the firm for claim administration are:
Clerical/Administrative Support $36 – $55
IT/Programming $136 – $173
Case Managers $113 – $228
Consultants/Directors/VPs $228 – $269
Executive VP, Solicitation $269
Jane Sullivan, executive vice-president of Epiq, disclosed in a
court filing that her firm is a "disinterested person" as defined
in section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Jane Sullivan
Epiq Bankruptcy Solutions LLC
777 Third Avenue, 12th Floor
New York, New York 10017
About Lehman Brothers
Lehman Brothers U.K. Holdings (Delaware) Inc. and Lehman
Pass-Through Securities Inc. were managed and controlled by Lehman
Brothers Holdings Inc. upon the effective date of its Chapter 11
plan and are debtor-controlled entities under that plan.
Prior to the commencement of LBHI's Chapter 11 case, LUK was a
wholly-owned, direct subsidiary of the company and the direct and
indirect parent of a substantial portion of the company's European
operations. During the same period, LPTSI was a direct subsidiary
of Lehman Commercial Paper Inc., which was an indirect subsidiary
of LBHI.
The primary business of LUK and LPTSI is managing a portfolio of
global assets. This includes interacting with borrowers, joint
venture partners, and other parties related to the assets;
monitoring the real-estate development projects; assessing key
variables that influence the recovery values of those entities'
assets; and evaluating market conditions in order to determine
whether to hold or sell.
LUK and LPTSI sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D.N.Y. Case Nos. 17-12442 and 17-12443) on August
31, 2017. The petitions were signed by Christopher Mosher,
director, vice-president and assistant treasurer.
At the time of the filing, the Debtors disclosed that they had
estimated assets of $500 million to $1 billion and liabilities of
$100 million to $500 million.
Epiq Bankruptcy Solutions, LLC is the Debtors' claims and noticing
agent.
LEHMAN BROTHERS UK: Taps Weil Gotshal as Legal Counsel
------------------------------------------------------
Lehman Brothers U.K. Holdings (Delaware) Inc. and Lehman
Pass-Through Securities Inc. seek approval from the U.S. Bankruptcy
Court for the Southern District of New York to hire legal counsel.
The Debtors propose to employ Weil, Gotshal & Manges LLP to assist
them in connection with any proposed bankruptcy plan and provide
other legal services related to their Chapter 11 cases.
Weil Gotshal will not seek awards of compensation for fees or
reimbursement of expenses incurred in connection with the
prosecution of the cases from the Debtors.
Pursuant to an agreement with the Debtors' equity holders, Lehman
Brothers Holdings Inc. will pay for the expenses. Weil Gotshal has
agreed to this arrangement and to charge LBHI in accordance with
its past practice in representing the company, according to court
filings.
Garrett Fail, Esq., at Weil Gotshal, disclosed in a court filing
that the firm is a "disinterested person" as defined in section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Garrett A. Fail, Esq.
Jacqueline Marcus, Esq.
Matthew S. Barr, Esq.
Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, NY 10153
Tel: (212) 310-8000
Fax: (212) 310-8007
Email: garrett.fail@weil.com
Email: jacqueline.marcus@weil.com
Email: matt.barr@weil.com
About Lehman Brothers
Lehman Brothers U.K. Holdings (Delaware) Inc. and Lehman
Pass-Through Securities Inc. were managed and controlled by Lehman
Brothers Holdings Inc. upon the effective date of its Chapter 11
plan and are debtor-controlled entities under that plan.
Prior to the commencement of LBHI's Chapter 11 case, LUK was a
wholly-owned, direct subsidiary of the company and the direct and
indirect parent of a substantial portion of the company's European
operations. During the same period, LPTSI was a direct subsidiary
of Lehman Commercial Paper Inc., which was an indirect subsidiary
of LBHI.
The primary business of LUK and LPTSI is managing a portfolio of
global assets. This includes interacting with borrowers, joint
venture partners, and other parties related to the assets;
monitoring the real-estate development projects; assessing key
variables that influence the recovery values of those entities'
assets; and evaluating market conditions in order to determine
whether to hold or sell.
LUK and LPTSI sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. S.D.N.Y. Case Nos. 17-12442 and 17-12443) on August
31, 2017. The petitions were signed by Christopher Mosher,
director, vice-president and assistant treasurer.
At the time of the filing, the Debtors disclosed that they had
estimated assets of $500 million to $1 billion and liabilities of
$100 million to $500 million.
Epiq Bankruptcy Solutions, LLC is the Debtors' claims and noticing
agent.
LEVERETTE TILE: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Leverette Tile, Inc.
dba Leverette Home Design Center
9824 Ideal Ln
Hudson, FL 34667
Type of Business: Founded in 1995, Leverette Tile, dba Home
Design Center -- http://www.levtile.com--
is a family-owned business engaged in
tile installation. Since then, Leverette
has grown to include natural stone, kitchen
cabinets, fixtures, flooring, and more.
Chapter 11 Petition Date: September 5, 2017
Case No.: 17-07840
Court: United States Bankruptcy Court
Middle District of Florida (Tampa)
Debtor's Counsel: Alberto F Gomez, Jr., Esq.
JOHNSON, POPE, BOKOR, RUPPEL & BURNS, LLP
PO Box 1100
Tampa, FL 33601-1100
Tel: 813-225-2500
Fax: 813-223-7118
E-mail: al@jpfirm.com
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Brian Leverette, president.
The Debtor's list of 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/flmb17-07840.pdf
LYONDELL CHEMICAL: Judge Dismisses Creditors' $5.9B Clawback Suit
-----------------------------------------------------------------
Patrick Fitzgerald, writing for The Wall Street Journal Pro
Bankruptcy, reported that a bankruptcy judge in New York tossed a
lawsuit filed by creditors of LyondellBasell Industries AF to claw
back more than $5.9 billion the chemical company's shareholders
received from a failed 2007 leveraged buyout.
According to the report, Judge Martin Glenn of the U.S. Bankruptcy
Court in New York in a brief, three-page order dismissed with
prejudice a lawsuit brought by a trustee on behalf of creditors of
LyondellBasell's bankruptcy.
The creditors were seeking to claw back the billions in cash from
hundreds of former shareholders -- pension and mutual funds, Wall
Street banks, hedge funds and retail investors -- of Lyondell
Chemical Co., the report related. The creditors had also sued
billionaire deal maker Leonard Blavatnik over the 2007 merger of
Lyondell Chemical and Basell AF that created what was then one of
the largest chemical companies in the world, the report further
related.
Mr. Blavatnik's Basell paid $48 a share for Lyondell, what the
creditors called a "blowout price" in court filings, which allowed
the Houston-based chemical company's shareholders to collect
billions from the merger, the report said.
Unhappy creditors sued to claw back the cash from shareholders,
arguing the merger amounted to what was a so-called fraudulent
transfer that left Lyondell insolvent, the report said. Mr.
Blavatnik denied that he thought the deal would fail and blamed the
global recession for the company's financial troubles, the report
added.
About Lyondell Chemical
Rotterdam, Netherlands-based LyondellBasell Industries is one of
the world's largest polymers, petrochemicals and fuels companies.
Luxembourg-based Basell AF and Lyondell Chemical Company merged
operations in 2007 to form LyondellBasell Industries, the world's
third largest independent chemical company. LyondellBasell became
saddled with debt as part of the US$12.7 billion merger. Len
Blavatnik's Access Industries owned the Company prior to its
bankruptcy filing.
On Jan. 6, 2009, LyondellBasell Industries' U.S. operations, led by
Lyondell Chemical Co., and one of its European holding companies --
Basell Germany Holdings GmbH -- filed voluntary petitions to
reorganize under Chapter 11 of the U.S. Bankruptcy Code to
facilitate a restructuring of the company's debts. The case is In
re Lyondell Chemical Company, et al., Bankr. S.D.N.Y. Lead Case No.
09-10023). Seventy-nine Lyondell entities filed for Chapter 11.
Luxembourg-based LyondellBasell Industries AF S.C.A. and another
affiliate were voluntarily added to Lyondell Chemical's
reorganization filing under Chapter 11 protection on April 24,
2009.
Deryck A. Palmer, Esq., at Cadwalader, Wickersham & Taft LLP, in
New York, served as the Debtors' bankruptcy counsel. Evercore
Partners served as financial advisors, and Alix Partners and its
subsidiary AP Services LLC, served as restructuring advisors.
AlixPartners' Kevin M. McShea acted as the Debtors' Chief
Restructuring Officer. Clifford Chance LLP served as restructuring
advisors to the European entities.
LyondellBasell emerged from Chapter 11 bankruptcy protection in May
2010, with a plan that provides the Company with US$3 billion of
opening liquidity. A new parent company, LyondellBasell Industries
N.V., incorporated in the Netherlands, is the successor of the
former parent company, LyondellBasell Industries AF S.C.A., a
Luxembourg company that is no longer part of LyondellBasell.
LyondellBasell Industries N.V. owns and operates substantially the
same businesses as the previous parent company, including
subsidiaries that were not involved in the bankruptcy cases.
LyondellBasell's corporate seat is Rotterdam, Netherlands, with
administrative offices in Houston and Rotterdam.
MARINA BIOTECH: Incurs $1.17 Million Net Loss in Second Quarter
---------------------------------------------------------------
Marina Biotech, Inc. filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $1.17 million on $0 of revenue for the three months ended June
30, 2017, compared to a net loss of $129,240 on $0 of revenue for
the same period during the prior year.
For the six months ended June 30, 2017, the Company reported a net
loss of $2.25 million on $0 of revenue compared to a net loss of
$243,431 on $0 of revenue for the six months ended June 30, 2016.
As of June 30, 2017, Marina had $6.63 million in total assets,
$4.15 million in total liabilities and $2.47 million in total
stockholders' equity.
At June 30, 2017, the Company had an accumulated deficit of
$4,205,053 and a negative working capital of $3,756,388. The
Company anticipates that it will continue to incur operating losses
as it executes its plan to raise additional funds and investigate
strategic and business development initiatives. In addition, the
Company has had and will continue to have negative cash flows from
operations. The Company previously funded its losses primarily
through the sale of common and preferred stock and warrants, the
sale of notes, revenue provided from its license agreements and, to
a lesser extent, equipment financing facilities and secured loans.
In 2016 and 2015, the Company funded operations with a combination
of the issuance of notes and preferred stock, and license-related
revenues. At June 30, 2017, the Company had a cash balance of
$263,913. Its operating activities consume the majority of its
cash resources.
"There is substantial doubt about our ability to continue as a
going concern for one year from the issuance date of this Form
10-Q, which may affect our ability to obtain future financing or
engage in strategic transactions, and may require us to curtail our
operations," the Company stated in the regulatory filing. "We
cannot predict, with certainty, the outcome of our actions to
generate liquidity, including the availability of additional debt
financing, or whether such actions would generate the expected
liquidity as currently planned."
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/YlTLib
About Marina Biotech
Headquartered in Bothell, Washington, Marina Biotech, Inc. --
http://www.marinabio.com/-- is a biotechnology company focused on
the treatment of arthritis, pain, hypertension, and oncology
diseases using combination therapies of already approved drugs.
The company is developing and commercializing late stage,
non-addictive pain therapeutics. The company's 'next-generation of
celecoxib,' including IT-102 and IT-103, are designed to control
the dangerous side-effect of edema that prohibits the drug from
being prescribed at higher doses. These have the potential of
replacing opioids and combating the opioid epidemic.
Marina Biotech reported a net loss of $837,143 on $0 of revenue for
the year ended Dec. 31, 2016, compared with a net loss of $1.11
million on $0 of revenue for the year ended Dec. 31, 2015.
Squar Milner LLP, in Los Angeles, California, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Dec. 31, 2016, citing that the Company has suffered
recurring losses and negative cash flows from operations and has
had recurring negative working capital. This raises substantial
doubt about the Company's ability to continue as a going concern.
MERRIMACK PHARMACEUTICALS: 9 Directors Elected by Stockholders
--------------------------------------------------------------
At Merrimack Pharmaceuticals, Inc.'s 2017 annual meeting of
stockholders held on Aug. 11, 2017, the Company's stockholders:
1. elected Richard Peters, M.D., Ph.D., Gary L. Crocker,
John M. Dineen, Vivian S. Lee, M.D., Ph.D., John
Mendelsohn, M.D., Ulrik B. Nielsen, Ph.D., Michael E.
Porter, Ph.D., James H. Quigley and Russell T. Ray
to the Company's Board of Directors, each for a one year
term ending at the Company's 2018 annual meeting of
stockholders;
2. approved, on a non-binding advisory basis, the compensation
of the Company's named executive officers; and
3. ratified the selection of PricewaterhouseCoopers LLP as the
Company's independent registered public accounting firm for
the fiscal year ending Dec. 31, 2017.
About Merrimack
Cambridge, Mass.-based Merrimack Pharmaceuticals, Inc., is a
biopharmaceutical company discovering, developing and preparing to
commercialize innovative medicines consisting of novel therapeutics
paired with companion diagnostics. The Company's initial focus is
in the field of oncology. The Company has five programs in
clinical development. In it most advanced program, the Company is
conducting a pivotal Phase 3 clinical trial.
Merrimack reported a net loss of $153.5 million on $144.3 million
of total revenues for the year ended Dec. 31, 2016, compared to a
net loss of $147.8 million on $89.25 million of total revenues for
the year ended Dec. 31, 2015.
As of June 30, 2017, Merrimack had $213.45 million in total assets,
$108.97 million in total liabilities and $106.50 million in total
stockholders' equity.
PricewaterhouseCoopers LLP, in Boston, Massachusetts, issued a
"going concern" qualification on the consolidated financial
statements for the year ended Dec. 31, 2016, noting that the
Company has negative working capital and cash outflows from
operating activities that raise substantial doubt about its ability
to continue as a going concern.
MERRIMACK PHARMACEUTICALS: Appoints New Chief Financial Officer
---------------------------------------------------------------
Merrimack Pharmaceuticals, Inc., entered into an employment
agreement with Jean M. Franchi to serve as the Company's chief
financial officer. Ms. Franchi will also serve as the Company's
principal financial officer, principal accounting officer and
treasurer. Ms. Franchi began her employment and assumed those
positions with the Company on Aug. 21, 2017.
In connection with entering into the Employment Agreement,
effective as of Aug. 21, 2017, (i) Richard Peters, the Company's
president and chief executive officer, will cease to serve in the
position of principal financial officer and (ii) John L. Green, the
Company's controller, will cease to serve in the position of
principal accounting officer. Dr. Peters and Mr. Green have served
as principal financial officer and principal accounting officer,
respectively, on an interim basis since June 14, 2017.
Ms. Franchi, age 50, previously served as chief financial officer,
treasurer and secretary at Dimension Therapeutics, Inc., a
biotechnology company, from August 2015 to July 2017. From
February 2012 to July 2015, Ms. Franchi served as chief financial
officer at Good Start Genetics, Inc., a molecular genetics
information company. From 1995 to 2011, Ms. Franchi held various
positions at Sanofi Genzyme, a global pharmaceutical company,
including senior vice president of corporate finance, senior vice
president of business unit finance, vice president of finance and
controller, product line and International Group. Ms. Franchi
holds a B.B.A. from Hofstra University and successfully completed
the Uniform CPA Examination.
There is no family relationship between Ms. Franchi and any of the
Company's directors or executive officers.
The Employment Agreement continues until Dec. 31, 2017, and
thereafter renews automatically on December 31 of each year for
successive one year terms, unless either the Company or Ms. Franchi
gives notice of non-renewal.
Pursuant to the terms of the Employment Agreement, Ms. Franchi will
receive an annual base salary of $400,000 and is eligible for an
annual bonus percentage of up to 35% of her base salary. The
Company will also pay Ms. Franchi a one-time signing bonus of
$100,000. Subject to the further approval of the Board, the
Company will also grant Ms. Franchi an option to purchase 450,000
shares of the Company's common stock at an exercise price per share
equal to the fair market value of the Company's common stock on the
date of grant. The option will vest over three years at a rate of
1/6th of the total number of shares on Feb. 21, 2018, and an
additional 1/12th of the total number of shares at the end of each
successive three month period following Feb. 21, 2018, until fully
exercisable.
Ms. Franchi is also bound by the terms of a separate
non-disclosure, developments, non-competition and non-solicitation
agreement, which, among other things, prohibits Ms. Franchi, during
the term of her employment and for a period of one year thereafter,
from competing with the Company and soliciting or hiring the
Company's employees.
Upon execution and effectiveness of a severance agreement and
release of claims, Ms. Franchi is entitled to severance payments if
the Company terminates her employment without cause (as defined in
the Employment Agreement), including the Company's decision not to
renew her term of employment, or if she terminates her employment
with the Company for good reason (as defined in the Employment
Agreement).
If Ms. Franchi's employment terminates under these circumstances,
in each case prior to a change in control (as defined in the
Employment Agreement), the Company is obligated for a period of 12
months to pay Ms. Franchi her base salary and pay for coverage for
her under any company sponsored medical benefit plans available to
the Company's senior management employees. In addition, the
Company would be obligated to pay her a pro-rata bonus for the
portion of the year in which she was employed by the Company based
on her average annual bonus payments over each of the three years
prior to the year of termination, or such lesser period during
which she served as one of the Company's executive officers.
If Ms. Franchi's employment terminates under these circumstances,
in each case within 18 months following a change in control, the
Company is obligated to pay her a lump sum amount equal to 36
months of her base salary plus a bonus equal to three times the
average of her annual bonus payments over each of the three years
prior to the year of termination, or such lesser period during
which she served as one of the Company’s executive officers,
accelerate the vesting of all outstanding stock options, restricted
stock or other equity awards granted to her and pay for coverage
for her under any company sponsored medical benefit plans available
to the Company’s senior management employees for a period of 18
months.
If Ms. Franchi dies or the Company terminates Ms. Franchi's
employment due to disability, she will be eligible to receive a
pro-rata bonus for the portion of the year in which she was
employed by the Company based on her average annual bonus payments
over each of the three years prior to the year of termination, or
such lesser period during which she served as one of the Company's
executive officers.
About Merrimack
Cambridge, Mass.-based Merrimack Pharmaceuticals, Inc., is a
biopharmaceutical company discovering, developing and preparing to
commercialize innovative medicines consisting of novel therapeutics
paired with companion diagnostics. The Company's initial focus is
in the field of oncology. The Company has five programs in
clinical development. In it most advanced program, the Company is
conducting a pivotal Phase 3 clinical trial.
Merrimack reported a net loss of $153.5 million on $144.3 million
of total revenues for the year ended Dec. 31, 2016, compared to a
net loss of $147.8 million on $89.25 million of total revenues for
the year ended Dec. 31, 2015.
PricewaterhouseCoopers LLP, in Boston, Massachusetts, issued a
"going concern" qualification on the consolidated financial
statements for the year ended Dec. 31, 2016, noting that the
Company has negative working capital and cash outflows from
operating activities that raise substantial doubt about its ability
to continue as a going concern.
MICHELE MAYER: $85K Sale of Property to Home Helpers Approved
-------------------------------------------------------------
Judge Louise D. Adler the U.S. Bankruptcy Court for the Southern
District of California authorized Michele Ann Mayer's sale of real
property located at 612 S. Court St, Visalia, California, to Home
Helpers Partners, LLC, for $85,000.
A hearing on the Motion was held on Aug. 24, 2017 at 2:30 p.m.
The sale is free and clear of all Liens.
The Debtor is allowed to pay from the Sale of the Subject Property
those costs and fees set forth in the Motion, and the sale proceeds
will be directly paid to the lienholders based upon their demands
and order of priority, except that the disputed amount claimed as a
secured debt by the IRS pursuant to the IRS federal tax lien
recorded Sept. 28, 2015 as instrument/file number 2015-0054982 in
the official records of Tulare County, which will be paid along
with all net proceeds into a segregated, blocked account.
The Debtor will segregate all net proceeds from the Sale into a
separate DIP account and will not use, disburse, or transfer any
funds from it without further order of the Court.
The lienholder rights of the IRS will be released and extinguished
against the Subject Property and will carry over and attach to the
sale proceeds until the claim/lien dispute has been resolved.
WFB's lien is undisputed. Subsequent to entry of the Order on the
Motion, WFB, by and through its counsel of record, will provide an
updated formal and written payoff demand to the Debtor, the
Debtor's Counsel, and the designated escrow officer with respect to
WFB's claim. WFB's claim will be paid in full directly from escrow
from the proceeds of the sale as a 1st position secured creditor in
accordance with the terms and provisions of its provided payoff
demand. In addition, prior to the scheduled closing of escrow, the
counsel for WFB will be authorized to obtain a copy of the
estimated HUD-1 Settlement/Closing Statement from escrow for review
and approval prior to any closing, and WFB reserves the right to
require an updated payoff demand prior to any close of escrow to
ensure its claim is paid in full.
The 14-day stay of Federal Rule of Bankruptcy Procedure 6004(h) is
waived and the Debtor is authorized to complete the sale
immediately upon entry of the Order.
Lakeside, California-based Michele Ann Mayer sought Chapter 11
protection (Bankr. S.D. Cal. Case No. 16-07171) on Nov. 25, 2016.
The Debtor tapped Andrew Moher, Esq., at Moher Law Group, as
counsel. She has employed Cindy Coray and Modern Broker as her
real estate broker.
MICHELE MAYER: $92.5K Sale of Ivanhoe Property to Hernandez Okayed
------------------------------------------------------------------
Judge Louise D. Adler of the U.S. Bankruptcy Court for the Southern
District of California authorized Michele Ann Mayer's sale of real
property located at 15842 Edmiston Ave, Ivanhoe, California, to
Michael Hernandez for $92,500.
The hearing on the Motion was held on Aug. 24, 2017 at 2:30 p.m.
The sale is free and clear of Liens.
The Debtor will be allowed to pay from the Sale of the Subject
Property those costs and fees set forth in the Motion, and the sale
proceeds will be directly paid to the lienholders based upon their
demands and order of priority, except that the disputed amount
claimed as a secured debt by the IRS pursuant to the IRS federal
tax lien recorded Sept. 28, 2015 as instrument/file number
2015-0054982 in the official records of Tulare County, which will
be disbursed along with all net proceeds into a segregated, blocked
account.
The Debtor will segregate all net proceeds from the Sale into a
separate DIP account and will not use, disburse, or transfer any
funds from The Blocked Account without further order of the Court.
The lienholder rights of the IRS will be released and extinguished
against the Subject Property and will carry over and attach to the
sale proceeds until the claim/lien dispute has been resolved.
The 14-day stay of Federal Rule of Bankruptcy Procedure 6004(h) is
waived and the Debtor is authorized to complete the sale
immediately upon entry of the Order.
Lakeside, California-based Michele Ann Mayer sought Chapter 11
protection (Bankr. S.D. Cal. Case No. 16-07171) on Nov. 25, 2016.
The Debtor tapped Andrew Moher, Esq., at Moher Law Group as
counsel. She has employed Cindy Coray and Modern Broker as her
real estate broker.
MICHELE MAYER: $93K Sale of Property to DVP Approved
----------------------------------------------------
Judge Louise D. Adler of the U.S. Bankruptcy Court for the Southern
District of California authorized Michele Ann Mayer's sale of real
property located at 820 S. Burke St., Visalia, California, to DVP,
LP, for $93,000.
A hearing on the Motion is set for Aug. 24, 2017 at 2:30 p.m.
The sale is free and clear of all Liens.
The Debtor will be allowed to pay from the Sale of the Subject
Property those costs and fees set forth in the Motion, and the sale
proceeds will be directly paid to the lienholders based upon their
demands and order of priority, except that the disputed amount
claimed as a secured debt by the IRS pursuant to the IRS federal
tax lien recorded Sept. 28, 2015 as instrument/file number
2015-0054982 in the official records of Tulare County, which will
be disbursed along with all net proceeds into a segregated, blocked
account.
The Debtor will segregate all net proceeds from the Sale into a
separate DIP account and will not use, disburse, or transfer any
funds from it without further order of the Court.
The lienholder rights of the IRS will be released and extinguished
against the Subject Property and will carry over and attach to the
sale proceeds until the claim/lien dispute has been resolved.
Deutsche's lien is undisputed. Subsequent to entry of the Order on
the Motion, Deutsche, by and through its counsel of record, will
provide an updated formal and written payoff demand to the Debtor,
the Debtor's Counsel, and the designated escrow officer with
respect to Deutsche's claim. Deutsche's claim will be paid in
full, directly from escrow from the proceeds of the sale as a 1st
position secured creditor in accordance with the terms and
provisions of its provided payoff demand. In addition, prior to
the scheduled closing of escrow, the counsel for Deutsche will be
authorized to obtain a copy of the estimated HUD-1
Settlement/Closing Statement from escrow for review and approval
prior to any closing, and Deutsche reserves the right to require an
updated payoff demand prior to any close of escrow to ensure its
claim is paid in full.
The 14-day stay of Rule 6004(h) of the Federal Rules of Bankruptcy
Procedure is waived and the Debtor is authorized to complete the
sale immediately upon entry of the Order.
Based in Lakeside, California, Michele Ann Mayer sought Chapter 11
protection (Bankr. S.D. Cal. Case No. 16-07171) on Nov. 25, 2016.
The Debtor tapped Andrew Moher, Esq., at Moher Law Group as
counsel. She has employed Cindy Coray and Modern Broker as her
real estate broker.
MILNER DISTRIBUTION: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------------
Debtor: Milner Distribution Alliance, Inc.
dba Maxx Sunglasses
738 Synthes Ave
Monument, CO 80132
Type of Business: Founded in 2004, Milner Distribution, d/b/a Maxx
Sunglasses, is a local, family owned company
based out of Monument, Colorado, that owns the
Maxx Sunglasses brand. Today, Maxx Sunglasses
has over 20,000 retail accounts including
stores, golf courses, college bookstores, and
MLB stadiums and outlets. It previously sought
bankruptcy protection on Sept. 23, 2014 (Bankr.
D. Colo. Case No. 14-22962).
Web site: http://www.maxxsunglasses.com/
Chapter 11 Petition Date: September 5, 2017
Case No.: 17-18249
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Hon. Joseph G. Rosania Jr.
Debtor's Counsel: Jeffrey Weinman, Esq.
WEINMAN & ASSOCIATES, P.C.
730 17th St., Ste. 240
Denver, CO 80202
Tel: 303-572-1010
E-mail: jweinman@epitrustee.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Richard Milner, president.
The Debtor's list of 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/cob17-18249.pdf
NATIONAL EVENTS: Ch. 7 Trustee May Obtain Records From 7 Banks
--------------------------------------------------------------
Alex Wolf, writing for Bankruptcy Law360, reports that the Hon.
James L. Garrity Jr. of the U.S. Bankruptcy Court for the Southern
District of New York has approved all seven requests of Kenneth
Silverman of Silverman Acampora LLP, the Chapter 7 trustee for
National Events Holdings LLC, to obtain relevant bank statements,
records and other documents from JPMorgan Chase Bank NA and
Citibank NA, among others. According to Law360, the Chapter 7
Trustee requested to be allowed to collect information from seven
big banks in an effort to uncover details about the Debtor's
alleged Ponzi scheme and the disappearance of $70 million.
About National Events Holdings
National Events Holdings, LLC, et al., operate together a ticket
broker and wholesale distributor of tickets for sporting and
theatrical events that was formed in 2006. They provide ticketing
services for all concert, theater and sporting event tickets, as
well as various V.I.P. hospitality packages that deliver exclusive
access to big name events, including hotels, celebrity meet and
greets and exclusive parties.
National Events Holdings, et al., filed for Chapter 11 bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 17-11556) on June 5,
2017. Two affiliates -- National Events of America Inc. (Case No.
17-11798) and New World Events Group Inc. (17-11799) -- filed
Chapter 11 petitions on June 28, 2017. The cases are jointly
administered.
The Debtors' attorneys are Stephen B. Selbst, Esq., and Hanh V.
Huynh, Esq., at Herrick, Feinstein LLP, in New York. Timothy
Puopolo of RAS Management Advisors, LLC, is the Debtors' as chief
restructuring officer.
OM SHANTI: Case Summary & 2 Unsecured Creditors
-----------------------------------------------
Debtor: Om Shanti Om Three, LLC
dba Fairfield Inn & Suites, Houma, LA
320 South Cities Service Hwy
Sulphur, LA 70663
Type of Business: Om Shanti Om Three owns a 78-room hotel known as
Fairfield Inn and Suites, located at 1530 MLK
Drive, Houma, Louisiana. The hotel provides
complimentary Wi-Fi, plus a newly renovated
fitness center, and an indoor heated pool. The
hotel, together with all FF&E, linens, office
equipment, appliances, and all other equipment
and goods required to operate the hotel
property, is valued at $1.50 million.
Chapter 11 Petition Date: September 5, 2017
Case No.: 17-20833
Court: United States Bankruptcy Court
Western District of Louisiana (Lake Charles)
Judge: Hon. Robert Summerhays
Debtor's Counsel: Wade N. Kelly, Esq.
LAW OFFICE OF CHRISTIAN D CHESSON
One Lakeshore Drive, Suite 1800
Lake Charles, LA 70629
Tel: (337) 436-5297
Fax: (337) 433-0777
E-mail: wnkellylaw@yahoo.com
Total Assets: $1.51 million
Total Liabilities: $4.73 million
The petition was signed by Nimesh Zaver, managing member.
The Debtor's list of two unsecured creditors is available for free
at http://bankrupt.com/misc/lawb17-20833.pdf
ONE57 79: Taps Lewis & Thomas as Legal Counsel
----------------------------------------------
ONE57 79, Inc. seeks approval from the U.S. Bankruptcy Court for
the Southern District of Florida to hire legal counsel in
connection with its bankruptcy case.
The Debtor proposes to employ Lewis & Thomas LLP to, among other
things, give legal advice regarding its duties under the Bankruptcy
Code and negotiate with creditors in the preparation of a
bankruptcy plan.
The firm received an initial retainer of $10,000, of which $922 was
used to pay the fee in connection with the conversion of the
Debtor's Chapter 7 case to one under Chapter 11.
Ronald Lewis, Esq., disclosed in a court filing that he and his
firm do not represent any interest adverse to the Debtor or its
estate.
Lewis & Thomas can be reached through:
Ronald B. Lewis, Esq.
Lewis & Thomas LLP
165 E. Palmetto Park Road, Suite 200
Boca Raton, FL 33432
Phone: 561-368-7474
Fax: 561-368-0293
About ONE57 79 Inc.
An involuntary Chapter 7 bankruptcy petition was filed against
ONE57 79, Inc. (Bankr. S.D. Fla. Case No. 17-18433) on July 3,
2017, by petitioning creditor Campion Maverick Inc.
Judge Robert A. Mark entered an order for relief in the involuntary
case on August 1, 2017, and an order granting the Debtor's motion
to convert the Chapter 7 case to a Chapter 11 proceeding on August
2, 2017.
The Debtor hired Robert W. Seiden as chief restructuring officer.
OPTIMA SPECIALTY: Plan Deal with Sponsor Terminated; Talks Ongoing
------------------------------------------------------------------
Optima Specialty Steel, Inc., in June won court approval of its
reorganization plan. However, the plan support agreement reached
with sponsor Optima Acquisitions, LLC, required that the effective
date of the plan occur on or before Aug. 31, 2017 -- a milestone
that wasn't achieved.
The Company recently said in a filing with the U.S. Bankruptcy
Court for the District of Delaware that on Aug. 31, 2017, the
Debtors served a notice of termination of the Plan Support
Agreement with Optima Acquisitions.
The Debtors said in the Sept. 1 filing that they are actively
engaged with certain of their stakeholders to modify the Plan and
other documents, as may be necessary or appropriate, in order to
maximize value of the Debtors' estates and consummate a plan of
reorganization as soon as practicable and in an efficient manner.
The Debtors have asked the Court to schedule a status hearing for
the Chapter 11 Cases during the week of Sept. 11, 2017.
To recall, on June 29, 2017, the Bankruptcy Court confirmed a
Second Amended Chapter 11 Plan of Reorganization for Optima
Specialty and its affiliated debtors. The Plan confirmation came
less than seven months after the Company filed for Chapter 11.
The Confirmed Plan contemplated the entry of an exit financing
facility of $130 million, and Optima Acquisition's equity
contribution of $200 million.
Specifically, Optima Acquisitions, which is the sole 100% common
stock shareholder of debtor Optima Specialty, agreed to fund the
Plan with $200 million in cash as a contribution in respect of its
outstanding and unimpaired existing Optima common stock. Under
the Plan, the Debtors were to raise an additional $105 million exit
financing term loan and an exit financing revolver of $35 million,
commitments for which will be obtained from one or more third
parties. The $200 million Plan Sponsor Contribution and the $140
million of exit financing would fund the implementation of the
Plan's provisions providing for unimpaired treatment to all
creditors and leave Optima Acquisitions -- as sole shareholder --
unimpaired. In return for the $200 million Plan Sponsor
Contribution, Optima Acquisitions will retain its existing 100%
equity interest in Optima.
Optima Acquisitions is a privately-owned U.S.-based investment
firm. OA is owned by three individuals: Mordechai Korf (33%),
Gennadiy Bogolyubov (33%) and Igor Kolomoyskyy (33%). Korf has
been the Chief Executive Officer and/or Chairman of Optima since
its formation in 2008.
A copy of the Disclosure Statement explaining the terms of the Plan
is available at:
http://bankrupt.com/misc/deb16-12789-801.pdf
About Optima Specialty Steel
Optima Specialty Steel Inc. and its affiliates are independent
manufacturers of specialty steel products. Their manufacturing
facilities are located in the United States, and each of the
companies' operating units have operated in the steel industry for
more than 50 years.
Optima Specialty Steel, Inc., and its affiliates filed Chapter 11
bankruptcy petitions on Dec. 15, 2016: Optima Specialty Steel, Inc.
(Bankr. D. Del. 16-12789); Niagara LaSalle Corporation (Bankr. D.
Del. 16-12790); The Corey Steel Company (Bankr. D. Del. 16-12791);
KES Acquisition Company (Bankr. D. Del. 16-12792); and Michigan
Seamless Tube LLC (Bankr. D. Del. 16-12793). The petitions were
signed by Mordechai Korf, chief executive officer. At the time of
filing, Optima Specialty estimated assets and liabilities of $100
million to $500 million.
The Debtors engaged Greenberg Traurig, LLP, in Wilmington,
Delaware, as counsel. The Debtors tapped Ernst & Young LLP as
their accountant. Garden City Group is the claims and noticing
agent, and maintains the site
http://cases.gardencitygroup.com/oma/info.php
No request has been made for the appointment of a trustee or
examiner.
On Jan. 4, 2017, the U.S. Trustee for Region 3 appointed an
official committee of unsecured creditors. The committee retained
Squire Patton Boggs (US) LLP as its lead counsel and Whiteford,
Taylor & Preston LLC as its local Delaware counsel.
OPTIMUMBANK HOLDINGS: Reports $168,000 Net Loss for 2nd Quarter
---------------------------------------------------------------
Optimumbank Holdings, Inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $168,000 on $1.11 million of total interest income for the three
months ended June 30, 2017, compared to a net loss of $54,000 on
$1.20 million of total interest income for the three months ended
June 30, 2016.
For the six months ended June 30, 2017, the Company reported a net
loss of $452,000 on $2.30 million of total interest income compared
to a net loss of $331,000 on $2.37 million of total interest income
for the six months ended June 30, 2016.
As of June 30, 2017, OptimumBank had $112.75 million in total
assets, $110.08 million in total liabilities and $2.67 million in
total stockholders' equity.
The Company is in default with respect to its $5,155,000 Junior
Subordinated Debenture due to its failure to make certain required
interest payments under the Debenture. The Trustee of the
Debenture or the holders of the Debenture are entitled to
accelerate the payment of the $5,155,000 principal balance plus
accrued and unpaid interest totaling $1,255,587 at June 30, 2017.
To date the Trustee has not accelerated the outstanding balance of
the Debenture. No adjustments to the accompanying condensed
consolidated financial statements have been made as a result of
this uncertainty.
Management's plans with regard to this matter are as follows: A
Director of the Company has offered to purchase the Debenture and
this offer has been approved by certain equity owners of the Trust
that holds the Debenture. The Director has also agreed to enter
into a forbearance agreement with the Company with respect to
payments due under the Debenture upon consummation of the
Director's purchase of the Debenture.
In March 2016, the Trustee received a direction from certain equity
owners of the Trust that holds the Debenture to sell the Debenture
to a Director of the Company. Based upon the receipt of
conflicting directions from other debt holders of the Trust, in
August 2016, the Trustee commenced an action in a Minnesota State
Court seeking directions from the Court. The case was subsequently
transferred to United States District Court for the Southern
District of New York, where the case is currently pending. The
Company continues to pursue mechanisms for paying the accrued
interest, such as raising additional capital.
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/Saxdfd
About OptimumBank Holdings
OptimumBank Holdings, Inc., headquartered in Fort Lauderdale, Fla.,
is a one-bank holding company and owns 100% of OptimumBank, a state
(Florida)-chartered commercial bank. The Company offers a wide
array of lending and retail banking products to individuals and
businesses in Broward, Miami-Dade and Palm Beach Counties through
its executive offices and three branch offices in Broward County,
Florida. Effective April 16, 2010, the Bank consented to the
issuance of a consent order by the Federal Deposit Insurance
Corporation and the Florida Office of Financial Regulation.
OptimumBank reported a net loss of $396,000 for the year ended Dec.
31, 2016, following a net loss of $163,000 for the year ended Dec.
31, 2015.
Hacker, Johnson & Smith PA, in Fort Lauderdale, Florida, issued a
"going concern" qualification on the consolidated financial
statements for the year ended Dec. 31, 2016, stating that the
Company is in technical default with respect to its Junior
Subordinated Debenture. The holders of the Debt Securities could
demand immediate payment of the outstanding debt of $5,155,000 and
accrued and unpaid interest, which raises substantial doubt about
the Company's ability to continue as a going concern.
ORIGINAL THAI: Case Summary & 3 Unsecured Creditors
---------------------------------------------------
Debtor: Original Thai 2015, Inc.
11363 Riverside Dr.
North Hollywood, CA 91602
Type of Business: Original Thai 2015 owns the Original Thai
Restaurant, which offers a variety of
traditional Thai dishes in a simple setting,
plus beer & wine. The restaurant is located at
11363 Riverside Dr North Hollywood, California.
Chapter 11 Petition Date: September 5, 2017
Case No.: 17-12370
Court: United States Bankruptcy Court
Central District of California (San Fernando Valley)
Judge: Hon. Maureen Tighe
Debtor's Counsel: Michael D Kwasigroch, Esq.
MICHAEL KWASIGROCH LAW FIRM
1975 Royal Ave, Ste 4
Simi Valley, CA 93065
Tel: 805-522-1800
Fax: 805-293-8665
E-mail: attorneyforlife@aol.com
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Amornrat Kaewthongkam, director.
The Debtor's list of three unsecured creditors is available for
free at http://bankrupt.com/misc/cacb17-12370.pdf
OVADA MORERO: Auction of Yuma Property to Pay Creditors Approved
----------------------------------------------------------------
Rene Lastreto, II of the U.S. Bankruptcy Court for the Eastern
District of California authorized Ovada Faye Pyle Morero's sale of
15 acres of real property and improvements located at 4756 East
32nd Street and 4710 East Highway 80, Yuma, Arizona ("Yuma
Commercial Property") at auction to be conducted by SVN Interstate
Auction Company.
A hearing on the Motion is set for Aug. 24, 2017 at 9:30 a.m.
The sale of the Yuma Commercial Property will be completed by Nov.
15, 2017.
The reserve price for the sale of the Yuma Commercial Property will
be set at $1.5 million and the minimum opening bid price for the
sale of the Yuma Commercial Property will be set at $1 million.
The Debtor will have discretion to accept an offer at or above
minimum opening bid even if the reserve price is not met.
The sale of the Yuma Commercial Property must net proceeds
sufficient to satisfy in full 1st Bank Yuma's and Hailes' claims.
The Debtor will not dispute 1st Bank Yuma's and Hailes' claims as
described in (i) the Opposition to Motion for Authority to Sell
Real Property at Public Auction filed by 1st Bank Yuma or the
Jointler in 1st Bank Yuma's Opposition to the Debtor's Motion to
Sell Real Property by Auction filed by Hailes ("Joinder") or (ii)
the Proofs of Claim tiled by the creditors in Debtor's case
consistent with the Opposition and the Joinder.
Nothing in the Order will restrict or limit the right of 1st Bank
Yuma or Hailes to bid at the sale of the Yuma Commercial Property
or otherwise exercise the rights given to them.
The Debtor will file a Motion to Confirm Sale of Real Property at
Public Auction after the auction for the sale of the Yuma
Commercial Property is completed. The Confirmation Motion will (i)
identify the purchaser of Yuma Commercial Property and the price
received from the sale of Yuma Commercial Property and (ii) inform
all creditors and other parties in interest of the relief from the
automatic stay grantcd to 1st Bank Yuma and Hailes by the Order if
the Yuma Commercial Property is not sold within 90 days of the
auction.
After the Continuation Motion is granted, 1st Bank Yuma's and
Hailes' claims will be paid out of escrow without further
application to or arder of the Court and the Debtor will deposit
the balance of the proceeds from the sate of the Yuma Commercial
Property into her DIP account. She will be authorized to use net
proceeds from the sale of the Yuma Commercial Property to (i) fund
a Plan of Reorganization, or (ii) otherwise be administered and
disposed of under relevant provisions of the law.
1st Yuma Bank and Hailes will have relief from the automatic stay
without further application to or order of the Court and will be
entitled to pursue any and all state law and contractual remedies
available to them if the Yuma Commercial Property does not sell
within 90 days from the date of the auction. However, 1st Bank
Yuma and Hailes will not be prevented from seeking relief from stay
during the 90 day period if the creditors believe that cause exists
for granting such relief.
Ovada Faye Pyle Morero sought Chapter 11 protection (Bankr. E.D.
Cal. Case No. 17-12535-B-11) on June 30, 2017. The Debtor tapped
Leonard K. Welsh, Esq., as counsel.
OXFORD ASSOCIATES: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Oxford Associates Group, Inc.
5 West 47th Street, 2nd Floor
New York, NY 10018
Type of Business: Oxford Associates is a New York corporation led
by George Kyriakoudes, president. Its principal
place of business is located at 632/650/678
Warburton Avenue, Yonkers, NY.
Chapter 11 Petition Date: September 5, 2017
Case No.: 17-12487
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Judge: Hon. Mary Kay Vyskocil
Debtor's Counsel: Douglas J. Pick, Esq.
PICK & ZABICKI LLP
369 Lexington Avenue, 12th Floor
New York, NY 10017
Tel: (212) 695-6000
Fax: (212) 695-6007
E-mail: dpick@picklaw.net
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by George Kyriakoudes, president.
The Debtor did not file a list of its 20 largest unsecured
creditors on the Petition Date.
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/nysb17-12487.pdf
PACIFIC DRILLING: Announces Potential NYSE Delisting Events
-----------------------------------------------------------
Pacific Drilling S.A. on Sept. 1, 2017, disclosed that it has
received notice from the New York Stock Exchange, Inc. ("NYSE")
that the Company is considered to be "below compliance" with NYSE's
continued listing standards for a listed company. The two NYSE
continued listings standards applicable to the Company that it is
at risk of failing to satisfy are maintenance of:
-- Average market capitalization of not less than $15 million
over a 30 trading-day period, which is a minimum threshold standard
that does not allow for any plan/cure period; and
-- Average closing price of its common stock of not less than
$1.00 over a consecutive 30-trading-day period.
NYSE notified the Company that as of August 30, 2017, its 30
trading-day average share price was $0.99 and, consequently, the
Company would be delisted if it is not able to return to compliance
with the NYSE continued listing standards within the applicable
six-month cure period. The Company has until September 15, 2017 to
submit to the NYSE a letter indicating whether and how it intends
to cure the share price deficiency.
In addition, the Company notes that its market capitalization
dipped below $15.0 million for the first time on August 16, 2017.
Consequently, the Company expects that unless its market
capitalization increases materially, NYSE will commence delisting
proceedings for the Company's common stock on or about September
13, 2017 and before it is required to respond to NYSE's notice of
delisting due to the share price deficiency. The $15 million
average market capitalization continued listing condition does not
allow for any plan/cure period and, consequently, the Company would
be automatically and immediately delisted on the date that this
condition ceases to be satisfied. In that circumstance, the
Company's common shares will trade solely in the over-the-counter
market.
A delisting from the NYSE does not affect the Company's Securities
and Exchange Commission reporting requirements or any of the
Company's existing contractual or debt obligations.
About Pacific Drilling
Based in Luxembourg, Pacific Drilling S.A. (NYSE: PACD) --
http://www.pacificdrilling.com-- is an international offshore
drilling contractor. The Company's primary business is to contract
its high-specification rigs, related equipment and work crews,
primarily on a day rate basis, to drill wells for its clients. The
Company's contract drillships operate in the deepwater regions of
the United States, Gulf of Mexico and Nigeria.
Going Concern Doubt
As reported by The Troubled Company Reporter on August 16, 2017,
Pacific Drilling S.A. filed its quarterly report on Form 6-K,
disclosing a net loss of $138.07 million on $67.07 million of
revenues for the three months ended June 30, 2017, compared with a
net income of $8.23 million on $203.71 million of revenues for the
same period in 2016.
For the six months ended June 30, 2017, Pacific Drilling listed a
net loss of $237.91 million on $172.58 million of revenues,
compared to a net income of $5.72 million on $409.09 million of
revenues for the same period in the prior year.
The Company's balance sheet at June 30, 2017, showed $5.61 billion
in total assets, $3.17 billion in total liabilities, and a
stockholders' equity of $2.43 billion.
Market conditions in the offshore drilling industry in recent years
have led to materially lower levels of spending for offshore
exploration and development by the Company's current and potential
customers on a global basis while at the same time supply of
available drillships has increased, which in turn has negatively
affected its revenue, profitability and cash flows. As a result,
the Company is engaged in discussions with all of its stakeholders,
including its bank lenders under the 2013 Revolving Credit Facility
and the SSCF and an ad hoc group of holders of the Company's
capital markets indebtedness, regarding a restructuring of the
Company's existing capital structure to be sustainable in the
longer term.
The Sixth Amendments modify or waive application of certain
financial covenants for the fiscal quarters ending on March 31,
2017 and June 30, 2017. However, the Company expects that it will
be in violation of the maximum leverage ratio covenant in its 2013
Revolving Credit Facility and its SSCF for the fiscal quarter
ending on September 30, 2017. If the Company is unable to obtain
waivers of such covenants or amendments to the debt agreements,
such covenant default would entitle the Lenders to declare all
outstanding amounts under such debt agreements to be immediately
due and payable. Such acceleration would also trigger the
cross-default provisions of the Company's 2017 Senior Secured
Notes, the Senior Secured Term Loan B and the 2020 Senior Secured
Notes.
If the Company is unable to refinance its 2017 Senior Secured Notes
prior to its maturity in December 2017, and refinance its 2018
Senior Secured Term Loan B and its 2013 Revolving Credit Facility
prior to their maturity in June 2018, or complete a restructuring
and current market conditions persist, the Company may not have
sufficient liquidity to meet its debt obligations over the next
year following the date of the issuance of these financial
statements. As such, this condition gives rise to substantial
doubt about the Company's ability to continue as a going concern.
PACKARD SQUARE: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Packard Square LLC
1900 Telegraph Road, Suite 104
Bloomfield Hills, MI 48302
Type of Business: Packard Square LLC is a domestic limited
liability company incorporated in Michigan with
a business address of 1900 Telegraph Road Suite
104 Bloomfield Hills, MI 48302, Oakland County.
It listed its business as a single asset real
estate (as defined in 11 U.S.C. Section
101(51B)).
Chapter 11 Petition Date: September 5, 2017
Case No.: 17-52483
Court: United States Bankruptcy Court
Eastern District of Michigan (Detroit)
Judge: Hon. Thomas J. Tucker
Debtor's Counsel: David G. Dragich, Esq.
THE DRAGICH LAW FIRM PLLC
17000 Kercheval Avenue, Suite 210
Grosse Pointe Woods, MI 48230
Tel: (313) 886-4550
E-mail: ddragich@dragichlaw.com
- and -
Amanda Carol Vintevoghel, Esq.
THE DRAGICH LAW FIRM PLLC
17000 Kercheval Avenue, Suite 210
Grosse Pointe Woods, MI 48230
Tel: 313-886-4550
E-mail: avintevoghel@dragichlaw.com
Debtor's
Chief
Restructuring
Officer: Gene R. Kohut
Estimated Assets: $50 million to $100 million
Estimated Debts: $10 million to $50 million
The petition was signed by Craig Schubiner, manager. A full-text
copy of the petition is available for free at:
http://bankrupt.com/misc/mieb17-52483.pdf
List of Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Adkison Need Allen $3,508
& Rentrop PLLC
Allan Falk, PC $155,888
American Management $31,523
Services Central LLC
Assa Abloy $38,755
Builders Plumbing & $18,700
Heating Supply
Built Form LLC $8,419
C.E. Gleeson Constructors, Inc. $82,284
Cusmano & Co. $23,320
Elkins Kalt $4,035
Weintraub Reuben Gartside
Emily A. Minns PLC $6,000
Finish Works Carpentry $3,915
Hooper Hathaway, PC $93,216
Kitch Drutchas $222,441
Wagner Valitutti
MA Engineering $2,535
MacAllister Rentals $3,430
Midwestern Consulting $6,070
Professional Service $6,469
Industries, Inc.
Sensera Systems $2,606
Spittler Strategic $9,618
Services LLC
Sullivan Ward Asher $19,302
& Patton PC
Debtor: Milner Distribution Alliance, Inc.
dba Maxx Sunglasses
738 Synthes Ave
Monument, CO 80132
Type of Business: Founded in 2004, Milner Distribution, d/b/a Maxx
Sunglasses, is a local, family owned company
based out of Monument, Colorado, that owns the
Maxx Sunglasses brand. Today, Maxx Sunglasses
has over 20,000 retail accounts including
stores, golf courses, college bookstores, and
MLB stadiums and outlets. It previously sought
bankruptcy protection on Sept. 23, 2014 (Bankr.
D. Colo. Case No. 14-22962).
Web site: http://www.maxxsunglasses.com/
Chapter 11 Petition Date: September 5, 2017
Case No.: 17-18249
Court: United States Bankruptcy Court
District of Colorado (Denver)
Judge: Hon. Joseph G. Rosania Jr.
Debtor's Counsel: Jeffrey Weinman, Esq.
WEINMAN & ASSOCIATES, P.C.
730 17th St., Ste. 240
Denver, CO 80202
Tel: 303-572-1010
E-mail: jweinman@epitrustee.com
Estimated Assets: $500,000 to $1 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Richard Milner, president.
The Debtor's list of 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/cob17-18249.pdf
PARETEUM CORP: Incurs $1.34 Million Net Loss in Second Quarter
--------------------------------------------------------------
Pareteum Corporation filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $1.34 million on $3.23 million of revenues for the three months
ended June 30, 2017, compared to a net loss of $2.82 million on
$3.26 million of revenues for the three months ended June 30,
2016.
For the six months ended June 30, 2017, the Company reported a net
loss of $2.63 million on $6.03 million of revenues compared to a
net loss of $7.13 million on $6.54 million of revenues for the six
months ended June 30, 2016.
The Company's balance sheet at June 30, 2017, showed $11.56 million
in total assets, $15.45 million in total liabilities and a total
stockholders' deficit of $3.88 million.
"Our performance in the second quarter clearly demonstrates
Pareteum's ability to innovate, market, and sell valuable new
products and services into the continuously evolving multi-billion
dollar mobile telecommunication market. Over the past quarters, we
have implemented an aggressive turnaround that has led to reduced
operating costs; an increasing number of new high-margin, recurring
revenue contracts; attracting some of the best management and sales
talent in the industry; and the development and launch of the kinds
of products and services that cater to the future of our industry,"
said Hal Turner, executive chairman of Pareteum. "The increase in
our revenue backlog to approximately $60 million, representing a
41% increase over Q1 and almost triple our backlog number at the
beginning of 2016 is the best indicator of our performance to date
and serves as the basis for our expectation of continued top line
growth over the second half of 2017 and into 2018."
Q2 2017 Key Metrics & Operational Highlights:
* Revenue backlog increased to approximately $60 million as of
June 30, 2017, up 41% over the first quarter and nearly a
three-fold increase over the beginning of 2016. This 36-month
contracted revenue backlog is driven by Pareteum's high-performing
sales team and the superior value Pareteum's
services deliver to customers relative alternatives in the market.
* Revenue per employee increased 18% in the second quarter to
$215,945 from $183,275 in the first quarter of 2017.
Year-over-year, revenue per employee is up 183% from $87,000 in Q2
of 2016 and up 359% since Pareteum started tracking revenue per
employee in Q4 2015, when it was approximately $47,000.
* 3-year contract signed with THYNGS Wireless. THYNGS chose
Pareteum's Global Mobility Cloud Platform for its comprehensive IoT
solution that serves smart city infrastructure including 90% of the
taxi cab market in Las Vegas and the New York City taxi and
limousine market. As a result of Pareteum's Global Mobility Cloud
Platform, THYNGS was able to save their customers over 50% on their
monthly service fees compared to other alternatives and deliver
superior mobile coverage and metrics previously unseen in their
industry niche.
* Entered Brazilian market with 7-year contract that includes
paid-in-advance fees and guaranteed recurring monthly service
revenues. A contract minimum of approximately $2 million may
increase into the 8-figure range based on a projected 3 million
subscribers and devices within a 3-year period. On-boarding of
subscribers is expected to commence in Q4 2017. The customer is a
leading Brazilian financial and marketing company that selected
Pareteum's Managed Services Platform through a
Software-as-a-Service (SaaS) agreement.
* Launched on-demand, hosted Home Location Register (HLR)
services, the main database location of permanent subscriber
information for a mobile network, to enable the customer's
subscriber database management and billing capabilities. HLR has
not generally been available in the market on an on-demand basis.
Pareteum has disruptively changed this business model and planted a
seed for future growth, resulting in three new customers in just
the past few months.
* Signed Global Mobility Cloud services contract with leading
UK-based Communications Services Provider (CSP) for Pareteum's
newly launched HLR services. Transaction-based revenue is expected
to commence in Q4 2017.
* 3-year contracts were signed with two additional UK-based
Communications Service Providers (CSPs) for Pareteum's HLR
services in July, just two months following announcement of the new
service. These two contracts represent more than 50,000 new
subscriber equivalents and an additional $1,000,000 to Pareteum's
current revenue backlog.
* Launched full featured 4G Broadband Services in July. The
offering creates a dynamic opportunity attracting new subscribers
while driving incremental recurring revenue for Pareteum. These
services allow Pareteum's customers including mobile virtual
network operators (MVNOs), enterprises and communications providers
hosted on its Managed Services Platform and those on its Global
Mobility Cloud platform to deliver full-feature advanced mobile
services typically available to subscribers on Tier-1 4G networks
including data-rich mobile web access, IP telephony, gaming
services, video conferencing, and virtual reality (VR)
applications.
* Appointed telecom industry veteran Laura Thomas as
Independent Director and Chair of Audit Committee in July.
* Received the 2017 Communications Solutions Product of the
Year Award for our Mobile Networking Software and Services by TMC
in July.
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/fwSzu9
About Pareteum Corp
New York-based Pareteum Corporation (NYSEMKT: TEUM), formerly known
as Elephant Talk Communications, Inc. -- http://www.pareteum.com/
-- is an international provider of business software and services
to the telecommunications and financial services industry.
Pareteum incurred a net loss of $31.44 million for the year ended
Dec. 31, 2016, compared with a net loss of $5 million for the year
ended Dec. 31, 2015.
Squar Milner, LLP, in Los Angeles, California, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Dec. 31, 2016, citing that the Company has suffered
recurring losses from operations, has an accumulated deficit of
$287,080,234 and has negative working capital. This raises
substantial doubt about the Company's ability to continue as a
going concern.
PHYSICAL PROPERTY: Incurs HK$169,000 Net Loss in Second Quarter
---------------------------------------------------------------
Physical Property Holdings Inc. filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q reporting a
net loss and comprehensive loss of HK$169,000 on HK$288,000 of
total operating revenues for the three months ended June 30, 2017,
compared to a net loss and comprehensive loss of HK$177,000 on
HK$260,000 of total operating revenues for the three months ended
June 30, 2016.
For the six months ended June 30, 2017, Physical Property reported
a net loss and total comprehensive loss of HK$389,000 on HK$516,000
of total operating revenues compared to a net loss and total
comprehensive loss of HK$344,000 on HK$554,000 of total operating
revenues for the six months ended June 30, 2016.
As of June 30, 2017, Physical Property had HK$8.72 million in total
assets, HK$12.97 million in total liabilities, all current, and a
total stockholders' deficit of HK$4.24 million.
The Company has financed its operations primarily through advances
from the Principal Stockholder.
Cash and cash equivalent balances as of June 30, 2017, and Dec. 31,
2016 were HK$101,000 (US$13,000) and HK$49,000, respectively.
Net cash used in operating activities was HK$176,000 (US$23,000)
and HK$306,000 for the six-month periods ended June 30, 2017 and
2016, respectively.
Net cash used in investing activities, which mainly included
increase in bank deposit, were Nil and HK$1,000 for the six-month
periods ended June 30, 2017, and 2016, respectively.
Net cash provided by financing activities, which mainly includes
repayment of bank loans and advances from the Principal
Stockholder, were HK$228,000 (US$30,000) and HK$222,000 during the
six-month periods ended June 30, 2017 and 2016, respectively.
During the six-month periods ended June 30, 2017, and 2016, the
Company had not entered into any transactions using derivative
financial instruments or derivative commodity instruments or held
any marketable equity securities of publicly traded companies.
Consistent with the general practice of lessors of residential
apartments, the Company receives monthly rentals, which are due on
the first day of each billing period and are non-refundable. This
practice creates working capital that the Company generally
utilizes for working capital purposes.
The Company had no trade receivable balance as of June 30, 2017,
and Dec. 31, 2016. The Company obtains rental deposits from its
tenants and has never experienced any significant problems with
collection of accounts receivable. No provision for doubtful
receivables had therefore been made for the period under review.
During the six-month periods ended June 30, 2017, and 2016, the
Company had no purchases of investments.
Management believes that cash flow generated from the operations of
the Company, the tight cost and cash flow control measures and the
existing cash and bank balances on hand should be sufficient to
satisfy the working capital requirement of the Company for at least
the next 12 months as the Principal Stockholder has confirmed his
intention to make available adequate funds to the Company as and
when required to maintain the Company as a going concern. However,
there can be no assurance that the financing from him will be
continued.
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/koTZaR
About Physical Property
Physical Property Holdings Inc. (PPYH.PK) is a Hong Kong-based real
estate company. The company buys, sells, invests in and rents real
estate in Hong Kong with five residential apartments in the area.
Physical Property reported a loss and total comprehensive loss of
HK$730,000 on HK$1.08 million of rental income for the year ended
Dec. 31, 2016, compared with a net loss and total comprehensive
loss of HK$795,000 on HK$1.07 million of rental revenue for the
year ended Dec. 31, 2015.
Mazars CPA Limited, in Hong Kong, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2016, citing that the Company had a negative working
capital as of Dec. 31, 2016, and incurred losses for the year then
ended, which raised substantial doubt about its ability to continue
as a going concern.
POINTE PROPERTIES: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Pointe Properties, LLC
4941 N Saint Patrick's Court
Bloomington, IN 47404
Type of Business: Pointe Properties -- http://www.eaglepointe.com/
-- owns a short-term condo rentals business at
2250 East Pointe Rd, Bloomington, IN. The
Condominium has an 18-hole professional golf
course, full service restaurant and bar. It
also offers event/wedding planning, company
retreats, pool and cabana bar and weekly music
on the terrace.
Chapter 11 Petition Date: September 5, 2017
Case No.: 17-06729
Court: United States Bankruptcy Court
Southern District of Indiana (Indianapolis)
Judge: Hon. Jeffrey J. Graham
Debtor's Counsel: Steven P. Taylor, Esq.
LAW OFFICE OF STEVEN P. TAYLOR, P.C.
6100 N. Keystone Avenue
Suite 254
Indianapolis, IN 46220
Tel: 317-475-1570
Fax: 317-475-1697
Email: sptaylor@bankruptcyoffice.net
Estimated Assets: $0 to $50,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Douglas R. Thomas, manager.
The Debtor's list of 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/insb17-06729.pdf
PORTRAIT INNOVATIONS: Seeks to Assume Plan Deal with Noteholders
----------------------------------------------------------------
Portrait Innovations, Inc., filed with the U.S. Bankruptcy Court
for the Western District of North Carolina a motion to assume a
Restructuring Support Agreement reached with its secured
noteholders.
The RSA will serve as a roadmap for the Chapter 11 cases and will
allow the Debtors to quickly emerge from Chapter 11. Under the
RSA, CapitalSouth Partners SBIC Fund III, L.P., and CapitalSouth
Partners Fund II Limited Partnership, holders of senior secured
subordinated promissory notes with principal balance of $15
million, have agreed to support a Chapter 11 restructuring that
contemplates (i) the elimination of underperforming stores, closing
of certain locations and reduction of operating costs, (ii) the
Debtors' sale of new shares in reorganized Portrait Innovations to
the Noteholders or to the winning bidder at the auction, and (iii)
the Noteholders providing funding for the Chapter 11 cases.
The Debtors intend to file a Chapter 11 plan of reorganization
shortly after the Petition Date. Under the Plan, Portrait
Innovation would transfer its assets to a newly organized entity
(the "Reorganized COmpanY"). The Noteholders have agreed to
acquire the equity interests in the Reorganized Company in exchange
for (i) the acceptance of new notes in the original principal sum
of $12 million on account of the Noteholder claims, (ii) the
acceptance of new shares in exchange for the remaining portion of
the Noteholder Claims; (iii) a commitment for DIP finacning of up
to $5 million; (iv) a commitment for exit financing of up to $5
million, which will be used to repay the DIP Facility, to fund
administrative claim reserves, and provide up to $250,000 (the "GUC
Fund") to be distributed to holders of allowed general unsecured
claims.
Under the proposed bidding procedures, the Debtors, with the
assistance of their financial advisors, Piper Jaffray, would
solicit higher and better bids for the equity of the Reorganized
Company, and the Debtors would hold an auction if the Debtors
receive more than one qualified bid.
The Noteholders can terminate the RSA if the effective date of the
Plan does not occur on or before Dec. 8, 2017.
The Debtors have proposed a bid deadline of Oct. 26, 2017, and an
auction on Nov. 2, 2017, at 10:00 a.m. Potential bidders
interested in conducting due diligence should contact:
Teri Stratton
PIPER JAFFRAY & CO
Managing Director
2321 Rosencrans Avenue Suite 3200
El Segundo, CA
Phone: (310) 297-6030
E-mail: Teri.L.Stratton@pjc.com
The Noteholders' attorneys:
Aaron S. Rothman, Esq.
Chad A. Dale III, Esq.
K&L GATES LLP
Hearst Tower, 47th Floor
Charlotte, NC 28202
Fax: (704) 331-7598
E-mail: aaron.rothman@klgates.com
Chad.dale@klgates.com
A full-text copy of the RSA Motion is available at:
http://bankrupt.com/misc/Portrait_21_M_RSA.pdf
About Portrait Innovations
Based in Charlotte, North Carolina, Portrait Innovations Inc. --
http://www.portraitinnovations.com/-- provides in-studio
photography sessions to consumers on both a walk-in and appointment
basis. The Company offers a variety of portrait packages and other
products such as canvases, mugs, calendars and holiday cards to its
customers after the session's completion, as well as through its
online portal, http://www.portraits.com/ As of Sept. 1, 2017,
Portrait operates more than 119 studios in 31 states.
On Sept. 1, 2017, Portrait Innovations, Inc. and parent Portrait
Innovations Holding Company filed voluntary petitions under the
provisions of Chapter 11 of the United States Bankruptcy Code
(Bankr. W.D.N.C. Lead Case No. 17-31455). The petitions were
signed by John Grosso, president and chief executive officer. Each
of the Debtors estimated assets and debt of $10 million to $50
million.
The Hon. Craig J. Whitley is the case judge.
Rayburn Cooper & Durham, P.A., serves as counsel to the Debtors.
Rust Consulting/Omni Bankruptcy is the claims and noticing agent.
POST EAST: May Use Cash Collateral Until Oct. 31
------------------------------------------------
The Hon. Ann M. Nevins of the U.S. Bankruptcy Court for the
District of Connecticut has entered an eight order authorizing Post
East, LLC, to use cash collateral for the months of September and
October 2017.
A continued hearing on use of cash collateral will be held on Oct.
25, 2017, at 10:00 a.m.
The Debtor is authorized to use rentals or other funds that may
constitute cash collateral in which Connect REO, LLC, asserts
secured interests, and that the use, or escrow for future use, may
be up to the total amount of expenses projected to be $11,258 for
September and $11,258 for October of cash and rental proceeds in
accordance with the budget, allowing up to 10% overage in any
category without further order, for the period from Sept. 1, 2017,
through Oct. 31, 2017, or through the occurrence of the Effective
Date of a confirmed plan of reorganization, whichever is earlier,
which sum includes two monthly adequate protection payments of
$6,500 each payable to secured creditor Connect REO, LLC, and to be
mailed to its attorney of record, Linda St. Pierre.
To the extent the interest of Connect REO in the cash collateral
may be proven, and to the extent the cash collateral is used, the
claimant is granted secured interests in all post-petition rents
and leases as the same may be generated, provided, however that the
post-petition secured interest will be subordinate to all
Chapter 11 quarterly fees that will become due pursuant to 28
U.S.C. Section 1930(a)(6).
A copy of the court order is available at:
http://bankrupt.com/misc/ctb16-50848-226.pdf
About Post East LLC
Post East, LLC, owns real estate at 740-748 Post Road East,
Westport, Connecticut. The property is a commercial real estate
which presently has seven leased spaces. The secured creditor is
Connect REO, LLC, which is owed $1,043,000.
Post East filed for Chapter 11 bankruptcy protection (Bankr. D.
Conn. Case No. 16-50848) on June 27, 2016. The petition was signed
by Michael F. Calise, member. The Debtor estimated assets and
liabilities at $1 million to $10 million at the time of the
filing.
The Debtor's bankruptcy counsel is Carl T. Gulliver, Esq., at Coan
Lewendon Gulliver & Miltenberger LLC. The Debtor's mortgage broker
is Richard J. Chappo of Chappo LLC.
On Feb. 2, 2017, Connect REO, LLC, a secured creditor, filed a
disclosure statement, which explains its proposed Chapter 11 plan
for the Debtor.
PRESSURE BIOSCIENCES: Reports $584K Net Loss for 2nd Quarter
------------------------------------------------------------
Pressure Biosciences, Inc., filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q disclosing a net loss
of $583,760 on $540,372 of total revenue for the three months ended
June 30, 2017, compared to net income of $961,829 on $510,963 of
total revenue for the three months ended June 30, 2016.
For the six months ended June 30, 2017, the Company recognized a
net loss of $6.17 million on $1.09 million of total revenue
compared to a net loss of $4.98 million on $1.02 million of total
revenue for the same period during the prior year.
As of June 30, 2017, Pressure Biosciences had $2.12 million in
total assets, $15.23 million in total liabilities and a total
stockholders' deficit of $13.10 million.
"We have experienced negative cash flows from operations with
respect to our pressure cycling technology business since our
inception," the Company stated in the regulatory filing. "As of
June 30, 2017, we did not have adequate working capital resources
to satisfy our current liabilities and as a result, we have
substantial doubt regarding our ability to continue as a going
concern. We have been successful in raising cash through debt and
equity offerings in the past and ... we received $3,787,967 in net
proceeds from loans and warrant exercises in the first half of
2017. We have efforts in place to continue to raise cash through
debt and equity offerings."
"We will need substantial additional capital to fund our operations
in future periods. In the event that we are unable to obtain
financing on acceptable terms, or at all, we will likely be
required to cease our operations, pursue a plan to sell our
operating assets, or otherwise modify our business strategy, which
could materially harm our future business prospects."
On Dec. 22, 2016, the Company filed a preliminary Form S-1 with the
Securities and Exchange Commission to register shares of its common
stock which would allow the Company to raise up to $12.5 million.
Net cash used in operations for the six months ended June 30, 2017,
was $2,389,698 as compared to $1,868,056 for the six months ended
June 30, 2016. The Company had a slightly higher operating loss in
the current period plus additional interest expense.
Net cash used in investing activities for the six months ended June
30, 2017, totaled $16,617 compared to none in the prior period.
,Cash capital expenditures included laboratory equipment and IT
equipment.
Net cash provided by financing activities for the six months ended
June 30, 2017, was $2,469,285 as compared to $1,421,674 for the
same period in the prior year. The cash from financing activities
in the period ending June 30, 2017, included $1,660,000 from our
Revolving Note and $140,215 from warrant exercises. The Company
also received $1,987,752 from non-convertible debt, net of fees,
less payment on non-convertible debt of $478,141 and payment on
convertible debt of $840,541. The prior period included proceeds
from senior secured convertible debt.
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/RfsKn6
About Pressure Biosciences
Pressure BioSciences, Inc., headquartered in South Easton,
Massachusetts, holds 14 United States and 10 foreign patents
covering multiple applications of pressure cycling technology in
the life sciences field.
Pressure Biosciences incurred a net loss of $2.7 million for the
year ended Dec. 31, 2016, compared to a net loss of $7.41 million
for the year ended Dec. 31, 2015.
MaloneBailey LLP, in Houston, Texas, issued a "going concern"
qualification on the consolidated financial statements for the year
ended Dec. 31, 2016, citing that the Company has a working capital
deficit and has incurred recurring net losses and negative cash
flows from operations. These conditions raise substantial doubt
about its ability to continue as a going concern.
QUALITY CONSERVATION: Intends to File Chapter 11 Plan by Oct. 29
----------------------------------------------------------------
Quality Conservation Services, Inc. requests the U.S. Bankruptcy
Court for the District of New Jersey to extend the period of time
within which the Debtor is exclusively permitted to file a Chapter
11 Plan to October 29, 2017, as well as the exclusive period to
solicit acceptances for a Plan to December 28, 2017.
Subsequent to the Petition Date, the Debtor has sought -- and the
Court approved -- the DIP financing of up to $700,000 from Free
Energy Savings Company LLC. The Debtor contends that the DIP
Financing and use of cash collateral was used to stabilize and
maintain its viability through these Chapter 11 proceedings, which
ultimately led to a sale.
The Debtor claims that it has entered into an asset purchase
agreement with Free Energy Savings, which provided for a sale
having a value of approximately $6.7 million to the estate, which
comprised of:
(a) the obligations owed to Free Energy Savings under the
DIP Credit Agreement being satisfied by Free Energy
Savings;
(b) the obligations owed to Richard Esteves under the
Debtor's agreement with Mr. Esteves will be
subordinated to the general unsecured claims and not
be receiving a distribution under the Plan;
(c) the assumption of certain liabilities, including cure
costs relating to Leases that the Purchaser assume;
(d) payment of claims pursuant to Section 503(b)(9) of
the Bankruptcy Code;
(e) a Wind Down Reserve of $80,000; and
(f) payment of $100,000 to the estate.
Although the Court has recently entered an order approving the
sale, the closing has not yet occurred.
Now that the Debtor has successfully transitioned into Chapter 11
and about to close on the Sale Transaction, the Debtor believes
that it is critical to have sufficient time to thoroughly review
filed proofs of claim, address priority claims, and consult with
the Committee in formulating a Chapter 11 Plan.
The Debtor tells the Court that it is seeking to extend the
exclusive periods in order to ensure that creditors are treated
fairly and equally. The Debtor maintains that the additional time
requested will allow it to engage in discussions with various
parties in interest, including the Committee, in an effort to
ensure that, when a plan is filed, it will hopefully be consensual
so that this case can proceed to an expeditious conclusion.
Accordingly, the Debtor believes that extending the exclusive
periods will afford the Debtor a meaningful opportunity to proceed
with the plan process for the benefit of all stakeholders and
creditors.
About Quality Conservation
Founded in 1997, Quality Conservation Services, Inc. --
http://www.qualityconservationservices.com/-- is a mid-sized
organization in the special trade contractors industry located in
Oak Ridge, New Jersey.
The Debtor sought bankruptcy protection (Bankr. D. N.J, Case No.
17-19063) on May 2, 2017. The petition was signed by Samuel
Galpin, chief executive officer. The Hon. Vincent F. Papalia
presides over the case.
The Debtors listed total estimated assets of $1 million to $10
million and total estimated liabilities of $1 million to $10
million.
Norris Mclaughlin & Marcus, PA serves as lead bankruptcy counsel to
the Debtors while Morris S. Bauer, Esq. serves as local counsel.
An official committee of unsecured creditors is represented by
Dipesh Patel, Esq. and Melissa A. Martinez, Esq. at Saul Ewing LLP.
RANGER FABRICATION: Wants to Move Plan Filing Deadline to Dec. 28
-----------------------------------------------------------------
Ranger Fabrication, LLC, Ranger Fabrication Management, LLC, and
Ranger Fabrication Management Holdings, LLC ask the U.S. Bankruptcy
Court for the District of Delaware to further extend the exclusive
periods during which only the Ranger Debtors may file a plan of
reorganization and solicit acceptances to the plan, through and
including December 29, 2017 and February 28, 2018, respectively.
The Ranger Debtors commenced chapter 11 cases alongside Triangle
USA Petroleum Corporation and its affiliates on the premise that an
orderly wind-down of the Ranger Debtors' affairs pursuant to a
chapter 11 plan represents the best outcome for all stakeholders.
Accordingly, the TUSA and the Ranger Debtors initially proposed a
joint plan for their respective estates. Under that plan, Ranger
creditors would receive their pro rata share of a cash pool set
aside from proceeds of a Rights Offering.
Following entry of the Disclosure Statement Order, the Debtors
began soliciting votes on the Second Amended Plan. The deadline for
voting on the Second Amended Plan was February 10, 2017. The one
voting class among the Ranger Debtors, Class 4 Ranger General
Unsecured Claims, narrowly voted to reject the Second Amended Plan.
Triangle Petroleum Corporation, the common parent of all of the
Debtors and largest creditor in that class, cast the deciding vote.
All other creditors of Ranger voted to accept the Second Amended
Plan.
On March 8, 2017, the TUSA Debtors filed a Plan, encompassing the
TUSA Debtors only. On March 10, the Court held a hearing to
consider confirmation of the TUSA Plan, and thereafter entered an
order confirming it. The Effective Date of the TUSA Plan occurred
on March 24. At the Confirmation Hearing, the Debtors indicated
their intent to adjourn the Second Amended Plan with respect to the
Ranger Debtors to a subsequent hearing.
The plan for the Ranger Debtors has been predicated on the
willingness of TUSA's stakeholders to allocate a modest share of
the Rights Offering proceeds to Ranger creditors, in order to
facilitate an orderly wind down of those affiliated entities.
Following the rejection of the plan by Class 4 Ranger General
Unsecured Claims and pursuant to the TUSA Plan, those proceeds are
vested in Reorganized TUSA, and the Ranger Debtors are not aware of
any alternative source of funding currently available for the
Ranger plan.
The Ranger Debtors believe that circumstances in the future may
allow for a resolution of the outstanding intercompany issues, of
which a Ranger Plan is just one, thereby laying the groundwork for
a confirmable plan for the Ranger Debtors. While no resolution
appears to be imminent, the requested extension of the Exclusivity
Periods will provide additional time to determine whether such a
resolution is achievable.
Although they wish to resolve their cases as expeditiously as
possible, the Ranger Debtors tell the Court they face no exigencies
that require a resolution within a particular timeframe. They also
are not subject to any case milestones under financing orders or
otherwise and they have no ongoing operations that would suffer if
their Chapter 11 Cases were extended.
Currently, the Ranger Debtors' efforts are appropriately focused on
finding the best solution, not necessarily the quickest. The
Ranger Debtors do not believe that there is any realistic path to a
confirmable Ranger plan outside of a consensual, multilateral
resolution of the broader intercompany issues. Accordingly, the
Debtors contend that there is little risk that the extension sought
will forestall the consideration of other feasible plan structures
for the Debtors.
About Triangle USA Petroleum
Triangle USA Petroleum Corporation is an independent exploration
and production company with strategic focus on developing the
Bakken Shale and Three Forks formations in the Williston Basin of
North Dakota and Montana. TUSA is a wholly owned subsidiary of
Triangle Petroleum Corporation (NYSE MKT: TPLM). Neither TPLM nor
its affiliated company, RockPile Energy Services, LLC, is included
in TUSA's Chapter 11 filing.
Triangle USA Petroleum Corporation and its affiliates, including
Ranger Fabrication, LLC, Ranger Fabrication Management, LLC, and
Ranger Fabrication Management Holdings, LLC, filed voluntary
petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del.
Lead Case No. 16-11566) on June 29, 2016. The cases are pending
before Judge Mary F. Walrath.
At the time of the filing, TUSA estimated assets in the range of
$500 million to $1 billion and liabilities of up to $1 billion.
The Debtors have engaged Sarah E. Pierce, Esq., at Skadden, Arps,
Slate, Meagher & Flom LLP as counsel, AP Services, LLC, as
financial advisor, PJT Partners Inc. as investment banker and Prime
Clerk LLC as claims & noticing agent.
Andrew R. Vara, Acting U.S. Trustee, has informed the U.S.
Bankruptcy Court for the District of Delaware that a committee of
unsecured creditors has not been appointed in the Chapter 11 cases
due to insufficient response to the U.S. Trustee
communication/contact for service on the committee.
REBECCA & JESSICA: Taps Alla Kachan as Legal Counsel
----------------------------------------------------
Rebecca & Jessica Cab Corp. seeks approval from the U.S. Bankruptcy
Court for the Eastern District of New York to hire the Law Offices
of Alla Kachan, P.C. as its legal counsel.
The firm will, among other things, assist the Debtor in
administering its Chapter 11 case and in negotiating with creditors
in formulating a plan of reorganization.
Kachan will charge an hourly fee of $300 for the services of its
attorneys. Clerks and paraprofessionals charge $150 per hour.
The firm received an initial retainer in the sum of $13,000.
Alla Kachan, Esq., disclosed in a court filing that the firm is a
"disinterested person" as defined in section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Alla Kachan, Esq.
Law Offices of Alla Kachan, P.C.
3099 Coney Island Avenue
Brooklyn, NY 11235
Tel: (718) 513-3145
Email: alla@kachanlaw.com
About Rebecca & Jessica Cab Corp.
Rebecca & Jessica Cab Corp., based in North Port, Florida, filed a
Chapter 11 petition (Bankr. E.D.N.Y. Case No. 17-42998) on June 8,
2017. The Hon. Nancy Hershey Lord presides over the case. Alla
Kachan, Esq., at the Law Offices of Alla Kachan, P.C., serves as
bankruptcy counsel.
In its petition, the Debtor estimated $0 in assets and $3 million
in liabilities. The petition was signed by Diana Libo, president.
The Debtor hired Wisdom Professional Services, Inc., as its
accountant.
RECESS HOLDINGS: S&P Assigns B Corp Credit Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B' corporate credit rating to
Chattanooga-based PlayCore. The outlook is stable.
S&P said, "We also assigned our 'B' issue-level rating and '3'
recovery rating to the company's proposed senior secured first-lien
term B facility due 2024, which consists of a $370 million
first-lien term loan and a $50 million delayed-draw facility. We
assume the delayed-draw portion will be fully drawn and have
incorporated it into our base case. The '3' recovery rating
indicates our expectation for meaningful (50%-70%; rounded
estimate: 60%) recovery for lenders in the event of a payment
default.
"In addition, we assigned our 'CCC+' issue-level rating and '6'
recovery rating to the company's proposed $145 million second-lien
term loan due 2025. The '6' recovery rating indicates our
expectation for negligible (0%-10%; rounded estimate: 0%) recovery
for lenders in the event of a payment default."
PlayCore will use proceeds from the proposed credit facilities to
finance its acquisition by Court Square Capital Partners, as well
as to fund potential future acquisitions.
The 'B' corporate credit rating reflects high lease-adjusted
leverage just above 6x through 2018, operations in competitive and
fragmented playground systems and outdoor recreational equipment
markets, and a meaningful one-third of sales to municipal customers
that can be volatile over the economic cycle. Partly offsetting
these risk factors are PlayCore's strong market share in playground
systems, that recent acquisitions expanded the company's diversity
beyond playground systems to include modestly less volatile biking
equipment, pool machines, and surfacing solutions, and good cash
flow conversion.
S&P siad, "We incorporate into our base case the likelihood that
PlayCore will sustain adjusted leverage just above 6x to fund
potential acquisitions, which is a good cushion compared to our 7x
threshold above which we would lower ratings."
A downgrade could result if PlayCore maintains adjusted debt to
EBITDA above 7x or EBITDA coverage of interest expense below 2x.
This scenario could occur if revenue significantly declines due to
a reduction in municipal budgets that result in lower demand for
playground sets and outdoor recreational amenities.
An upgrade is unlikely at this time given PlayCore's financial
sponsor ownership and debt-financed acquisition strategy. S&P could
raise the rating if it becomes confident the company would sustain
adjusted debt to EBITDA below 5x, incorporating the potential for
acquisitions and dividends to shareholders.
RJR TOWING: Seeks Nov. 26 Exclusive Plan Filing Period Extension
----------------------------------------------------------------
RJR Towing, LLC and NRMT, LLC, ask the U.S. Bankruptcy Court for
the Middle District of Florida to extend for 90 days, to November
26, 2017, the exclusive period for the Debtors to propose a plan of
reorganization.
Unless extended by an order of the Court, the Debtors' Exclusive
Plan Period was slated to expire on August 28, 2017.
The Debtors contend that they continue to actively negotiate with
creditors, including the principal secured creditor, to develop a
plan that is not only feasible but may result in consent to
confirmation by the creditors with the largest claims. The Debtors
claim that they are somewhat confident that, if given additional
time, they will be able to resolve the remaining issues to arrive
at a fair and confirmable plan.
In addition, Debtor RJR Towing, LLC, has filed a complaint in
Adversary No 3-17-ap-00125 (JAF) seeking a determination that
certain equipment leases are actually disguised financing
agreements, and for related relief.
The Debtors tell the Court that the expiration of the Exclusive
Periods would deny the Debtor a meaningful opportunity to negotiate
and propose a confirmable joint plan with all the constituent
parties, and would be antithetical to the reorganization objectives
of Chapter 11. The Debtors assure the Court that the requested
extension of the Exclusive Periods will not prejudice the
legitimate interests of any creditor or other party in interest.
About RJR Towing
Based on Jacksonville, Florida, the Debtors -- RJR Towing LLC and
NRMT LLC -- work together to operate a towing business. RJR Towing
LLC and NRMT LLC filed Chapter 11 petition (Bankr. M.D. Fla. Case
Nos. 17-00701 and 17-00702, respectively) on March 1, 2017. The
cases are jointly administered.
At the time of filing, the RJR Towing had $100,000 to $500,000 in
estimated assets and $500,000 to $1 million in estimated
liabilities, while NRMT had $0 to $50,000 in estimated assets and
$100,000 to $500,000 in estimated liabilities.
The Debtors are represented by Robert D. Wilcox, Esq., of Wilcox
Law Firm. The Petitions were signed by Jonathan Ramdhan,
president.
RMA STRATEGIC: Involuntary Chapter 11 Case Summary
--------------------------------------------------
Alleged Debtor: RMA Strategic Opportunity Fund, LLC
175 Federal Street, Suite 910
Boston, MA 02110
Type of Business: Hedge Fund
Involuntary Chapter 11 Petition Date: September 5, 2017
Case Number: 17-13328
Court: United States Bankruptcy Court
District of Massachusetts (Boston)
Judge: Hon. Frank J. Bailey
Alleged creditors who signed the Chapter 11 petition:
Petitioners Nature of Claim Claim Amount
----------- --------------- ------------
Craig F. Spencer Investment Fraud $347,034
2839 Canterbury Lane
Columbus, OH 43221
Amy J. Young Investment Fraud $802,311
2839 Canterbury Lane
Columbus, OH 43221
Anna Colette Young Investment Fraud $11,252
2839 Canterbury Lane
Columbus, OH 43221
Petitioners' Counsel: William R. Moorman, Jr., Esq.
PARTRIDGE SNOW & HAHN, LLP
30 Federal Street, 7th Floor
Boston, MA 02210
Tel: 617-292-7900
Fax: 617-292-7910
E-mail: wmoorman@psh.com
A full-text copy of the petition is available for free at:
http://bankrupt.com/misc/mab17-13328.pdf
ROOSTER ENERGY: Wants Plan Filing Deadline Moved to Dec. 29
-----------------------------------------------------------
BankruptcyData.com reported that Rooster Energy filed with the U.S.
Bankruptcy Court a motion to extend by 90 days the exclusive period
during which the Debtors may file their Chapter 11 plan and solicit
acceptances thereof through and including December 29, 2017 and
February 27, 2018, respectively. The motion explains, "Cause
exists to grant the short extension of time requested herein.
Specifically, the Debtor is engaged in several matters that are
likely to impact and promote the reorganization process, many of
which require the additional time sought. The Debtors remain in
discussions with both the administrative agent for their secured
lender, Angelo, Gordon Energy Servicer (the 'Administrative
Agent'), as well as the Debtors' largest equity owner, Chet
Morrison, on the structure of a plan of reorganization. The
Debtors believe that they can achieve a reorganizational structure
that works with the Administrative Agent and Mr. Morrison, but must
also then obtain approval from the committees in this Case as well
as from the Department of Interior. Additionally, the Debtors
expect to receive payment on several large receivables for
decommissioning work during the period between November and
December 2017. The Debtors will need these funds to, among other
things, satisfy debtor-in-possession financing obligations and
administrative claims, in order to emerge from bankruptcy."
About Rooster Energy
Houston, Texas-based Rooster Energy Ltd. --
http://www.roosterenergyltd.com/-- is an integrated oil and
natural gas company with an exploration and production (E&P)
business and a downhole and subsea well intervention and plugging
and abandonment service business. The Company's operations are
located in the state waters of Louisiana and the shallow waters of
the Gulf of Mexico, mature regions that have produced since 1936.
Rooster Energy, L.L.C., Rooster Energy Ltd., and five other
affiliates sought Chapter 11 protection (Bankr. W.D. La. Lead Case
No. 17-50705) on June 2, 2017. The petitions were signed by
Kenneth F. Tamplain, Jr., president and chief executive officer.
In its petition, Rooster Energy L.L.C. estimated $50 million to
$100 million in liabilities.
Jan M. Hayden, Esq., Lacey Rochester, Esq., Susan C. Mathews, Esq.,
and Daniel J. Ferretti, Esq., at Baker Donelson Bearman Caldwell &
Berkowitz, P.C., serve as bankruptcy counsel. Opportune LLP has
been tapped as restructuring advisor. Donlin Recano & Company,
Inc., serves as claims, noticing and solicitation agent.
On June 23, 2017, the U.S. Trustee appointed three creditors to
serve in the official committee of unsecured creditors of the
Rooster Petroleum case.
On June 22, 2017, the U.S. Trustee appointed two creditors to serve
in the official committee of unsecured creditors of the Cochon
Properties case.
ROSETTA GENOMICS: Will Hold Extraordinary Meeting on Sept. 18
-------------------------------------------------------------
Rosetta Genomics Ltd. issued a notice regarding an extraordinary
general meeting of the shareholders of the Company to be held at
the Philadelphia offices of the Company at 3711 Market St. Suite
740, Philadelphia, PA 19104, on Sept. 18, 2017 at 10:00 am (ET).
The agenda of the meeting are:
1. To approve an increase of the Company's registered
(authorized) share capital and the corresponding amendment to the
Company's articles of associations.
2. If Item 1 on the agenda of the Extraordinary Meeting is
approved, approval of an addition of 255,840 ordinary shares,
nominal (par) value NIS 7.2 each, to the shares authorized for
issuance under the Company's 2006 Employee Incentive Plan (Global
Share Incentive Plan (2006)), so that the total number of Ordinary
Shares authorized for issuance under the GSIP will equal 450,000.
The approval of each of Items 1 and 2 above requires the
affirmative vote of the holders of a majority of the voting power
represented at the meeting, in person or by proxy, and voting on
the matter.
Only shareholders of record at the close of trading on Aug. 21,
2017, will be entitled to notice of, and to vote at, the
Extraordinary Meeting. All shareholders are cordially invited to
attend the Extraordinary Meeting in person. Discussion at the
Extraordinary Meeting will be commenced if a quorum is present. Two
or more shareholders present, personally or by proxy, who hold or
represent together more than 25% of the voting rights of our issued
share capital will constitute a quorum for the Extraordinary
Meeting. If within half an hour from the time scheduled for the
Extraordinary Meeting a quorum is not present, the Extraordinary
Meeting will be adjourned to Sept. 25, 2017, at the same time and
place. At any such adjourned meeting, any two shareholders present
in person or by proxy will constitute a quorum.
Shareholders who do not expect to attend the Extraordinary Meeting
in person may vote by means of a proxy card and are requested to
mark, date and sign the enclosed proxy card and return it promptly
in the pre-addressed envelope provided. No postage is required if
mailed in the United States. Joint holders of shares should take
note that, pursuant to Article 32 of the Articles, the vote of the
senior holder who tenders a vote, in person or by proxy, will be
accepted to the exclusion of the vote(s) of the other joint
holder(s), and for this purpose seniority will be determined by the
order of registration of the joint holders in the Company's
shareholder register. In order to be counted, a duly executed
proxy must be delivered to the Company's registered office at 10
Plaut St., Rabin Science Park, Rehovot, 76706, Israel or to the
office of the Company's transfer agent, American Stock Transfer &
Trust Company, LLC located at 6201 15th Avenue, Brooklyn, NY 11219,
not less than four hours before the time fixed for the
Extraordinary Meeting unless such requirement is waived by the
chairman of the Extraordinary Meeting. Shareholders who attend the
Extraordinary Meeting may revoke their proxy cards and vote their
shares in person.
According to the Israeli Companies Law, 5759-1999, one or more
shareholders who hold at least 1% of the voting rights in the
General Meeting may request, within seven days as of the date of
this notice, that the Board of Directors include a subject matter
on the agenda of the Extraordinary Meeting, provided it is suitable
for discussion at a general meeting.
About Rosetta Genomics
Based in Rehovot, Israel, Rosetta Genomics Ltd. is seeking to
develop and commercialize new diagnostic tests based on a recently
discovered group of genes known as microRNAs. MicroRNAs are
naturally expressed, or produced, using instructions encoded in DNA
and are believed to play an important role in normal function and
in various pathologies. The Company has established a
CLIA-certified laboratory in Philadelphia, which enables the
Company to develop, validate and commercialize its own diagnostic
tests applying its microRNA technology.
Rosetta Genomics reported a net loss of US$16.23 million on US$9.23
million of total revenues for the year ended Dec. 31, 2016,
compared to a net loss of US$17.34 million on US$8.26 million of
total revenues for the year ended Dec. 31, 2015.
As of Dec. 31, 2016, Rosetta had US$11.96 million in total assets,
US$7.54 million in total liabilities, and $4.41 million in total
shareholders' equity.
Kost Forer Gabby & Kasierer, a member of Ernst & Young Global, in
Tel-Aviv, Israel, issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31, 2016,
citing that the Company has recurring losses from operations and
has limited liquidity resources that raise substantial doubt about
its ability to continue as a going concern.
ROYAL HOLDINGS: S&P Places B' CCR on CreditWatch Positive
---------------------------------------------------------
S&P Global Ratings placed its ratings, including the 'B' corporate
credit rating, on U.S.-based adhesives and sealants company Royal
Holdings Inc. on CreditWatch with positive implications.
The CreditWatch placement follows H.B. Fuller Co.'s announcement
that it has signed an agreement to acquire ASP Royal Acquisition
Corp., parent of Royal Holdings, for a purchase price of $1.575
billion. We expect the transaction to close in October 2017.
S&P said, "We expect to resolve the CreditWatch once we gain
assurance that the transaction will close as expected. We would
likely raise our ratings on Royal Holdings to bring them in line
with those on H.B. Fuller. Once the transaction closes, we would
then withdraw our ratings on Royal Holdings, assuming its debt is
fully repaid. If the transaction doesn't close as expected, we
would likely affirm the 'B' corporate credit rating, assuming Royal
Holdings' operating performance and credit measures remain within
our expectations."
SENIOR CARE GROUP: U.S. Trustee Appoints Mary L. Peebles as PCO
---------------------------------------------------------------
Acting on the U.S. Bankruptcy Court for the Middle District of
Florida's order directing the appointment of a patient care
ombudsman, acting U.S. trustee for Region 21 Guy Gebhardt appoints
Mary L. Peebles as the Patient Care Ombudsman in the following
cases: Key West Health and Rehabilitation Center, LLC; SCG Baywood,
LLC; SCG Gracewood, LLC; and SCG Laurellwood, LLC.
The PCO must prepare a report regarding the quality of patient and
resident care for the PCO Debtors and shall provide a copy of such
Report to counsel for Debtors, the Committee, and the U.S. Trustee.
Counsel for the Debtors shall file the Report with the Court and
provide notice of the filing of the Report to parties in interest
in accordance with Bankruptcy Rule 2015.1. The PCO shall prepare
and submit subsequent Reports every 60 days after the filing of the
initial Report.
The PCO must maintain all patient and resident care records in a
secure manner in accordance with the requirements of the Health
Insurance Portability and Accountability Act and all other
applicable non-bankruptcy law relating to patient privacy.
About Senior Care Group Inc.
Senior Care Group, Inc. is a non-profit corporation which, through
its wholly-owned subsidiaries, provides residents and patients with
nursing and long-term health care services.
Senior Care Group and its six affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. M.D. Fla. Lead Case No.
17-06562) on July 27, 2017. David R. Vaughan, chairman of the
Board, signed the petitions. Scott A. Stichter, Esq., at Stichter
Riedel Blain & Postler, P.A., serves as the Debtors' Chapter 11
counsel.
At the time of the filing, Senior Care Group disclosed that it had
estimated assets and liabilities of $1 million to $10 million.
The U.S. Trustee for Region 21 appointed Mary L. Peebles as the
Patient Care Ombudsman for Key West Health and Rehabilitation
Center, LLC; SCG Baywood, LLC; SCG Gracewood, LLC; and SCG
Laurellwood, LLC.
SLUSS & RAY: Needs More Time to Complete Asset Sale, File Plan
--------------------------------------------------------------
Sluss & Ray LLC and Chad William Raymond ask the U.S. Bankruptcy
Court for the District of Kansas to extend their exclusive deadline
to file a Chapter 11 plan and disclosure statement to November 30,
2017.
The Debtors relate that the Court has recently approved bid
procedures for the sale of their assets. The Debtors tell the Court
that they are now in the process of completing the sale activity.
As such, the Debtor claim they should be accorded the privilege of
attempting to consummate the sale in accordance with the Order
approving bid procedures and the companion Asset Purchase
Agreement.
Accordingly, the Debtors believe that any requirement for filing a
Plan of Reorganization should be deferred until completion of the
sale.
About Sluss & Ray
Sluss & Ray LLC -- which conducts business under the names Amaco, C
& M Empire LLC, Aamcot LLC, and CCWRW LLC -- operates three AAMCO
franchise transmission shops in Wichita, Kansas.
Sluss & Ray filed a Chapter 11 petition (Bankr. D. Kan. Case No.
17-10301) on March 9, 2017, disclosing $86,340 in total assets and
$1.22 million in total liabilities. Chad Raymond, the owner,
signed the petition.
The case is jointly administered with Mr. Raymond's individual
Chapter 11 case (Bankr. D. Kan. Case No. 17-10313) filed on March
10, 2017. Judge Dale L. Somers presides over the cases.
The Debtors are represented by Edward J. Nazar, Esq., at Hinkle Law
Firm, L.L.C.
SMITH FARM: Taps David Kruer as Legal Counsel
---------------------------------------------
Smith Farm of Clermont, LLC seeks approval from the U.S. Bankruptcy
Court for the Southern District of Ohio to hire legal counsel in
connection with its Chapter 11 case.
The Debtor proposes to employ David Kruer & Company LLC to, among
other things, give legal advice regarding its duties under the
Bankruptcy Code; assist in restructuring its debts; and prepare a
plan of reorganization.
The firm will charge an hourly fee of $275 for the services of its
attorneys and $110 for legal assistants.
David Kruer, Esq., disclosed in a court filing that he and his firm
do not hold any interest adverse to the Debtor or its estate.
The firm can be reached through:
David A. Kruer, Esq.
David Kruer & Company LLC
118 West Fifth Street, Suite E
Covington, KY 41011
Phone: (859) 291-7213
Fax: (859) 291-6513
Email: dkandco@fuse.ne
About Smith Farm of Clermont LLC
Smith Farm of Clermont, LLC sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. S.D. Ohio Case No. 17-12903) on August
8, 2017. Debra L. Henneke, member, signed the petition.
At the time of the filing, the Debtor disclosed that it had
estimated assets and liabilities of less than $500,000.
SPANISH BROADCASTING: Posts $2.56 Million Q2 Net Income
-------------------------------------------------------
Spanish Broadcasting System, Inc. filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q reporting net
income of $2.56 million on $34.18 million of net revenue for the
three months ended June 30, 2017, compared to a net loss of $3.77
million on $35.26 million of net revenue for the three months ended
June 30, 2016.
Operating income for the three months ended June 30, 2017, totaled
$16.5 million compared to $11.0 million for the same prior year
period, representing an increase of $5.5 million or 50%. This
increase was primarily due to the gain on the sale of the Company's
Los Angeles facility partially offset by the decrease in net
revenues, the increase in operating expenses and recapitalization
costs.
For the six months ended June 30, 2017, the Company reported a net
loss of $8.27 million on $65.53 million of net revenue compared to
a net loss of $15.09 million on $66.87 million of net revenue for
the same period during the prior year.
As of June 30, 2017, Spanish Broadcasting had $437.53 million in
total assets, $559.69 million in total liabilities and a total
stockholders' deficit of $122.16 million.
"During the second quarter, we continued to expand our multi-media
presence and capabilities while delivering unique on-air, digital
and experiential offerings to our audiences," said Raul Alarcon,
Chairman and CEO. "While our financial results were impacted by an
accrual of a franchise tax liability, we continue to make progress
from an operational perspective. Our total audience share is
growing, driven by our radio stations which remain among the most
highly rated across key Latino markets nationwide and further
penetration of our LaMusica mobile entertainment platform. We enter
the second half of the year with a sharp focus on further
leveraging our innovative multi-media platform and capabilities and
delivering targeted and engaged Latino audiences to our advertising
partners."
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/HXUJgp
About Spanish Broadcasting
Spanish Broadcasting System, Inc. (OTCMKTS:SBSAA) --
http://www.spanishbroadcasting.com/-- is one of the largest owners
and operators of radio stations in the United States. SBS owns and
operates 17 radio stations located in the top U.S. Hispanic markets
of New York, Los Angeles, Miami, Chicago, San Francisco and Puerto
Rico, airing the Spanish Tropical, Regional Mexican, Spanish Adult
Contemporary, Top 40 and Latin Rhythmic format genres. SBS also
operates AIRE Radio Networks, a national radio platform which
creates, distributes and markets leading Spanish-language radio
programming to over 250 affiliated stations reaching 93% of the
U.S. Hispanic audience. SBS also owns MegaTV, a television
operation with over-the-air, cable and satellite distribution and
affiliates throughout the U.S. and Puerto Rico. SBS also produces
live concerts and events and owns multiple bilingual websites,
including http://www.LaMusica.com/, an online destination and
mobile app providing content related to Latin music, entertainment,
news and culture.
Spanish Broadcasting reported a net loss of $16.34 million for the
year ended Dec. 31, 2016, compared with a net loss of $26.95
million in 2015.
Crowe Horwath LLP, in Fort Lauderdale, Florida, issued a "going
concern" qualification on the consolidated financial statements for
the year ended Dec. 31, 2016, stating that the 12.5% Senior Secured
Notes had a maturity date of April 15, 2017. Cash from operations
or the sale of assets was not sufficient to repay the notes and
other short term obligations when they became due, which resulted
in significant liquidity requirements on the Company that raise
substantial doubt about its ability to continue as a going
concern.
* * *
In May 2017, S&P Global Ratings withdrew its 'D' corporate credit
rating and issue-level ratings on Spanish Broadcasting System. "We
withdrew the ratings because we were unlikely to raise them from
'D', based on SBS' ongoing plans to restructure its debt," said S&P
Global Ratings' credit analyst Scott Zari. S&P had downgraded SBS
to 'D' on April 21, 2017, following the company's announcement that
it didn't repay its $275 million 12.5% senior secured notes that
were due April 15, 2017.
In April 2017, Moody's Investors Service downgraded SBS's corporate
family rating to 'Ca' from 'Caa2'. SBS's 'Ca' corporate family
rating reflects an elevated expected loss rate following the
recently announced default under the company's 12.5% senior secured
notes due April 2017.
STEMTECH INT'L: Exclusive Plan Filing Deadline Moved to Oct. 16
---------------------------------------------------------------
The Hon. Raymond B. Ray of the U.S. Bankruptcy Court for the
Southern District of Florida has extended, at the behest of
Stemtech International, Inc., the exclusive periods within which
only it may file and solicit acceptances of a plan through and
including Oct. 16, 2017, and Dec. 15, 2017, respectively.
As reported by the Troubled Company Reporter on Aug. 21, 2017, the
Debtor sought the extension, saying that although this case is not
particularly large, the case is somewhat complex.
The Official Committee of Unsecured Creditors and each of its
members have agreed not to move to terminate the Debtor's Exclusive
Filing Period prior to Oct. 16, 2017; provided, however, that the
agreement will not apply if the Committee discovers a material
matter not already known to the Committee as a result of informal
discovery undertaken to date regarding the Debtor which reasonably
requires termination of exclusivity.
About Stemtech International
Stemtech International, Inc., is a holding company with assets
comprising intellectual property, a leasehold interest, and direct
and indirect equity interests in several subsidiaries operating
both domestically and internationally. It filed a Chapter 11
bankruptcy petition (Bankr. S.D. Fla. Case No. 17-11380) on Feb. 2,
2017, estimating $1 million to $10 million in assets and
liabilities. The petition was signed by Ray C. Carter, chief
executive officer.
The Hon. Raymond B. Ray presides over the case.
The Debtor tapped SEESE, PA, as counsel; and GlassRatner Advisory &
Capital Group, LLC, as its financial advisor.
Guy Gebhardt, acting U.S. Trustee for Region 21, on Feb. 22, 2017,
appointed three creditors of Stemtech International, Inc., to serve
on the official committee of unsecured creditors. The committee
members are (1) Wilhelm Keller; (2) Greg Newman; and (3) Andrew P.
Leonard. The Committee retained Paul Steven Singerman, Esq., at
Berger Singerman LLP as counsel.
TAKATA CORP: Honda Reaches $605M Settlement in Inflator Suit
------------------------------------------------------------
Honda said Sept. 1, 2017, it has reached an agreement to resolve
the economic loss claims in the Takata airbag inflator
multidistrict class action litigation in the United States. The
settlement is structured to provide additional resources,
activities, and opportunities to further enhance Honda's efforts to
reach and encourage our customers to bring their cars to authorized
dealers for the free airbag inflator recall repair.
As part of the settlement valued at $605 million, Honda will create
a fund of nearly $200 million to augment its comprehensive recall
efforts, with a specific focus on reaching owners of affected
vehicles who have not been located or have not responded to the
recall notices. Honda has been making a variety of efforts to
reach out to owners to expedite the repair. This fund will further
supplement what it claims to be its already robust actions to
repair every car on the road affected by the recall and assure the
safety of drivers and passengers. An ample supply of replacement
airbag inflators are readily available for all of the remaining
affected vehicles.
The settlement also establishes a fund to reimburse out-of-pocket
costs incurred by Honda customers in obtaining the free replacement
part.
This agreement covers Honda and Acura vehicles already recalled or
subject to any future recall for Takata inflators used in driver or
front passenger airbag modules in the United States. The
settlement also provides additional coverage for free repairs or
replacements for Takata airbag inflators still in use and for
replacement airbag inflators from other suppliers.
The Takata airbag inflator recall is the largest such action in
history, affecting more than 42 million vehicles in the United
States and involving 19 automakers.
Honda continues to urge owners of Honda and Acura vehicles affected
by the Takata airbag inflator recalls to get their vehicles
repaired at authorized dealers as soon as possible. Vehicle owners
can check their vehicles' recall status at
http://www.recalls.honda.com/for Honda owners or
http://www.recalls.acura.com/for Acura owners or by calling their
authorized dealer.
About Takata Corp
Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/-- develops, manufactures and sells
safety products for automobiles. The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts.
Headquartered in Tokyo, Japan, Takata operates 56 plants in 20
countries with approximately 46,000 global employees worldwide.
The Company has subsidiaries located in Japan, the United States,
Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea,
China and other countries.
Takata Corp. filed for bankruptcy protection in Tokyo and the U.S.,
amid recall costs and lawsuits over its defective airbags. Takata
and its Japanese subsidiaries commenced proceedings under the Civil
Rehabilitation Act in Japan in the Tokyo District Court on June 25,
2017.
Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S.
and Mexican affiliates each filed voluntary petitions under Chapter
11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No.
17-11375) on June 25, 2017. Together with the bankruptcy filings,
Takata announced it has reached a deal to sell all its global
assets and operations to Key Safety Systems (KSS) for US$1.588
billion.
Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese
proceedings. Weil, Gotshal & Manges LLP and Richards, Layton &
Finger, P.A., are serving as counsel in the U.S. cases.
PricewaterhouseCoopers is serving as financial advisor, and Lazard
is serving as investment banker to Takata. Ernst & Young LLP is
tax advisor. Prime Clerk is the claims and noticing agent.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel, KPMG is serving as financial advisor, Jefferies LLC is
acting as lead financial advisor. UBS Investment Bank also
provides financial advice to KSS.
On June 28, 2017, TK Holdings, as the foreign representative of the
Chapter 11 Debtors, obtained an order of the Ontario Superior Court
of Justice (Commercial List) granting, among other things, a stay
of proceedings against the Chapter 11 Debtors pursuant to Part IV
of the Companies' Creditors Arrangement Act. The Canadian Court
appointed FTI Consulting Canada Inc. as information officer. TK
Holdings, as the foreign representative, is represented by McCarthy
Tetrault LLP.
The U.S. Trustee has appointed an Official Committee of Unsecured
Trade Creditors and a separate Official Committee of Tort
Claimants. The Official Committee of Tort Claimants selected
Pachulski Stang Ziehl & Jones LLP as counsel.
The Official Committee of Unsecured Creditors has selected
Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F.
Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington,
Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and Tyson
Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York;
and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy
LLP, in Washington, D.C., as its bankruptcy counsel.
Chapter 15 Cases
Takata Corporation ("TKJP") and affiliates Takata Kyushu
Corporation and Takata Services Corporation commenced Chapter 15
cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9,
2017, to seek U.S. recognition of the civil rehabilitation
proceedings in Japan. The Hon. Brendan Linehan Shannon oversees
the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP,
serves as Takata's counsel in the Chapter 15 cases.
TELEFLEX INC: Moody's Affirms Ba2 CFR on NeoTract Acquisition
-------------------------------------------------------------
Moody's Investors Service affirmed Teleflex Incorporated's ratings,
including its Ba2 Corporate Family Rating, following the
announcement that it plans to acquire NeoTract, Inc. for up to $1.1
billion. Moody's also affirmed the Ba2-PD Probability of Default
Rating, Ba3 senior unsecured note ratings, as well as the SGL-2
Speculative Grade Liquidity Rating. The rating outlook is stable.
Teleflex intends to fund a $725 million upfront payment by drawing
on its bank revolving credit facility.
"The NeoTract acquisition is credit negative for Teleflex
reflecting incremental leverage and reduced financial flexibility,"
said Morris Borenstein, Moody's Assistant Vice President. "Pro
forma debt to EBITDA will increase to 4.3 times. However, Moody's
believes it will fall below 3.5 times in 12 to 18 months, driven
primarily by good earnings growth," continued Borenstein.
Issuer: Teleflex Incorporated
-- Probability of Default Rating, Affirmed Ba2-PD
-- Speculative Grade Liquidity Rating, Affirmed SGL-2
-- Corporate Family Rating, Affirmed Ba2
-- Senior Unsecured Shelf, Affirmed (P)Ba3
-- Senior Unsecured Regular Bond/Debenture, Affirmed Ba3 LGD5
Outlook Actions:
-- Outlook, Remains Stable
RATINGS RATIONALE
Teleflex's Ba2 Corporate Family Rating reflects its moderately high
leverage and its small size relative to larger competitors. The
rating also reflects Teleflex's presence in low-tech medical
products with some product-line concentration. Teleflex's
acquisitions and R&D investments will accelerate sales growth in
2018. In addition, acquisition synergies and its distributor to
direct sales conversions will help improve margins. Debt/EBITDA
will decline to below 3.5 times in 12 to 18 months. That said,
Teleflex's acquisition appetite increases the likelihood that debt
to EBITDA will stay moderately high at over 3.0 times over the next
several years.
The stable outlook reflects Moody's expectation that Teleflex will
deleverage to around 3.5 times within 12 to 18 months of the close
of the transaction, largely through earnings improvement. Moody's
could upgrade the ratings if Teleflex can sustain solid sales
growth and improve its product diversification. If debt/EBITDA is
sustained below 3.0 times, the ratings could be upgraded. Moody's
could downgrade the ratings if Teleflex does not sustain positive
organic sales growth, is not able to deleverage as planned, or
engages in large debt financed acquisitions. The ratings could be
downgraded if Moody's expects debt/EBITDA to be sustained above 3.5
times.
Teleflex's SGL-2 Speculative Grade Liquidity Rating reflects
Moody's expectation that the company will maintain good liquidity
over the next 12-15 months. This is supported by Teleflex's healthy
and consistent cash generation and good projected cushion under its
financial covenants.
The company's senior unsecured notes are currently rated one-notch
below the CFR, reflecting the presence of a material amount of
secured bank debt with a priority position.
The principal methodology used in these ratings was Medical Product
and Device Industry published in June 2017.
Teleflex Incorporated, headquartered in Wayne, Pennsylvania, is a
global provider of medical products with a presence in the critical
care, surgical and cardiac areas. Revenues are approximately $2
billion.
TELEFLEX INC: S&P Alters Outlook to Neg. on Rising Debt Leverage
----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' corporate credit rating on
Teleflex Inc. and revised the outlook to negative from stable.
S&P said, "At the same time, we withdrew our issue-level rating on
the company's subordinated convertible notes, which were very
recently retired."
Teleflex announced plans to acquire NeoTract Inc., a medical device
company that focuses on the treatment of enlarged prostate (benign
prostatic hyperplasia or BPH). The transaction will initially be
funded with a draw on the company's revolver, though the company
indicated plans to potentially term-out the revolver debt, later in
2017, subsequent to the transaction.
S&P said, "Our negative rating outlook on Teleflex reflects
adjusted debt leverage and other credit metrics that are weak for
the rating, and downside risk to our expectation for prioritization
of deleveraging. Our rating hinges on the company's commitment to
prioritizing deleveraging to below 3x, over next 18 months, or so,
and is supported by a track record of generally maintaining
adjusted (net) debt leverage below 3x.
"We could lower the rating if we expect debt leverage to remain
above 3x on a sustained basis. This could happen if the company
prioritizes acquisitions or other strategic priorities ahead of
debt reduction. This could also occur from underperformance due to
heightened competition, operational disruptions, or weaker than
expected performance from newly acquired assets. This could occur
if margins are materially weaker than our base-case expectations
for 2018.
"We would consider revising the outlook to stable when we gain
confidence adjusted debt leverage will decline below 3x and
generally remain there."
TEMPLE OF HOPE: Has Final Approval to Use of Cash Collateral
------------------------------------------------------------
Judge D. Sims Crawford of the U.S. Bankruptcy Court for the
Northern District of Alabama ordered that the interim order
approving Temple of Hope Baptist Church, Inc.'s use of cash
Collateral entered by the Court on May 4, 2017 will be treated as a
final order until either the closing on the sale of the Debtor's
real property located at Lot 16, Block 2, Avondale, Alabama occurs,
or the Debtor's plan is confirmed, whichever occurs first.
The hearing on the Motions was held on Aug. 30, 2017 at 9:30 a.m.
Based on the filings and for the reasons set forth on the record
during the hearing, the Motion is due to be granted and the parties
will submit a proposed order.
About Temple of Hope Baptist Church
Temple of Hope Baptist Church, Inc., is a religious organization
which operates exclusively for religious, charitable, and distinct
ecclesiastical purposes in Birmingham, Alabama.
Temple of Hope Baptist Church filed a Chapter 11 petition (Bankr.
N.D. Ala. Case No. 17-00415) on Feb. 1, 2017. The petition was
signed by Oliver L. Jones, to Church's Pastor. At the time of
filing, the Debtor estimated $100,000 to $500,000 in assets and
$50,000 to $100,000 in liabilities.
The Debtor is represented by Frederick Mott Garfield, Esq., at
Spain & Gillon; and Gina H. McDonald, Esq., at Gina H. McDonald &
Associates, LLC.
No trustee or examiner has been appointed in the Debtor's case. An
official committee of unsecured creditors could not be formed due
to lack of interest, the U.S. Trustee said.
TRANSACTION NETWORK: Moody's Retains B2 CFR Amid $150MM Loan Add-on
-------------------------------------------------------------------
Moody's Investors Service said Transaction Network Services, Inc.'s
(TNS) B2 corporate family rating (CFR) is unchanged following its
anticipated $150 million add-on to its first lien term loan.
Proceeds from the debt issuance along with cash from the balance
sheet will be used to repay the company's outstanding second lien
term loan. The transaction is credit positive as it improves
liquidity and reduces interest expense by about $8 million
annually. All other ratings including the company's stable outlook
are also unchanged.
Moody's views amendments to TNS' credit agreement which include
allowing for this add-on as credit positive. These amendments will
provide for increased liquidity by extending the maturities on the
term loan and revolver by two and a half years, as well as increase
the size of the revolver to $75 million from $50 million.
Additional amendments further facilitate TNS' financial flexibility
and include a larger accordion feature on the loan and modified
covenants to allow for both higher leverage and the incurrence of
incremental debt. Moody's believes that TNS has sought these
modifications in anticipation of executing future tuck-in
acquisitions.
TNS' B2 CFR is supported by the company's well-established market
position with a robust network, diversified customer base, and
predictable revenue. The company's operating model benefits from
fixed-price, subscription-based contracts and recurring transaction
volumes that generate a steady revenue and cash flow. In addition,
Moody's recognizes the value of the company's growth businesses,
including mobile directory, payments and financial services, which
are critical offsets to balance the company's revenue trajectory.
The rating is constrained by TNS' aggressive financial policy,
which tolerates moderate leverage and substantial dividends. The
rating incorporates the downward pressure on the top-line from the
company's dependence on its legacy telecom services business which
remains in secular decline. Moody's also believes that there are
fewer opportunities to generate incremental cash flow from cost
cutting measures following several expense reducing actions over
the past few years.
Moody's could upgrade the rating if the company can maintain
consistent growth in revenue and EBITDA such that, on a sustained
basis, leverage falls below 4x (Moody's adjusted), and free cash
flow to debt exceeds 10%. Moody's could downgrade the rating if the
company experiences further deterioration in revenue or EBITDA due
to technological change, competition, or operational issues or if
additional debt financing results in debt to EBITDA sustained above
5.75x (Moody's adjusted).
TNS, Inc. is a provider of data communications and interoperability
solutions services with operations in its Telecommunication
Services, Payment Services, and Financial Services divisions. The
company provides products and services in North American, Europe
and Asia. For the last 12 months ended June 30, 2017 total revenues
were approximately $421 million.
UNITED CHARTER: Retention of Ten-X to Auction Stockton Property OKd
-------------------------------------------------------------------
Judge Ronald H. Sargis of the U.S. Bankruptcy Court for the Eastern
District of California authorized United Charter, LLC, to (i)
employ Ten-X, LLC as Auctioneer; (ii) and sell the property
commonly known as 1904, 1908, 1912, 1916, 1920, 1928, and 1936
Weber Avenue; 1881 E. Market Street; 1617, 1555, 1531, and 1523 E.
Main Street, Stockton, California, by online live auction.
No compensation is permitted except as expressly stated in the
Order: (i) 5% of gross sales price transaction fee to Ten-X as
Auctioneer; (ii) 1% of gross sales price for the seller's real
estate broker commission to Mark Bello, or the realtor for which
Mark Bello is employed if he is not licensed as a real estate
broker, if Mr. Bello's or another seller's broker is authorized by
separate order of the Court; and (iii) 1% of the gross sales price
for the buyer's real estate broker commission; with such fees and
commissions subject to review and modification pursuant to 11
U.S.C. Section 328.
The Property will be sold on these terms:
a. The Property will be sold on the terms and conditions set
forth in the Ten-X Marketing Agreement, and as further provided in
the Order.
b. The sale proceeds will first be applied to closing costs,
real estate commissions, prorated real property taxes and
assessments, liens, other customary and contractual costs and
expenses incurred in order to effectuate the sale.
c. The Debtor is authorized to execute any and all documents
reasonably necessary to effectuate the sale.
d. The Debtor is authorized to pay from the sales proceeds the
transaction fee, the buyer's broker's commission, and the seller's
broker's commission as authorized from the sales proceeds.
If the Debtor determines that a sales price is in the best interest
of the bankruptcy estate and creditors, then the Debtor may, by a
separate motion, seek a supplemental order authorizing the sale of
the Property for the said sales price. Said motion may be set for
hearing on at least seven days notice, with opposition authorized
to be presented orally at the hearing. The hearing may be set for
the Court's regularly scheduled Sacramento Division Chapter 11 law
and motion calendar, or specially set for hearing on the Court's
regularly scheduled 1:30 p.m. Sacramento Chapter 13 motion for
relief calendar.
The 14-day stay of enforcement of Federal Rule of Bankruptcy
Procedure 6004(h) is waived.
About United Charter
United Charter LLC, owner of certain properties in Stockton,
California, filed a Chapter 11 petition (Bankr. E.D. Cal. Case No.
17-22347) on April 7, 2017. The petition was signed by Raymond
Zhang, managing member. The case is assigned to Judge Ronald H.
Sargis. The Debtor is represented by Jeffrey J. Goodrich, Esq., at
Goodrich & Associates. The Debtor estimated assets and liabilities
ranging from $1 million to $10 million.
VALERIY ROMANCHENKO: Declares Sale of Nevada Properties for $617K
-----------------------------------------------------------------
Valeriy Romanchenko filed with the U.S. Bankruptcy Court for the
District of Nevada a declaration in support of the sale of real
properties (i) located at 9409 Abalone Way, Las Vegas, Nevada, for
$327,000; and (ii) located at 196 Adomeit Dr., Henderson, Nevada,
for $290,000.
Romanchenko declares that to the best of her knowledge and belief,
the properties she and Natalya Romanchenko propose to sell are the
Properties. Their counsel believes they are the appropriate prices
for the Properties. The proceeds will be used to complete the
Debtor's Plan obligations, including administrative, secured and
unsecured debt.
The sale is an urgent matter. The Debtors are in jeopardy of
losing the opportunity to sell the Properties if an order is not
entered within the next 90 days.
Valeriy Romanchenko sought Chapter 11 protection (Bankr. D. Nev.
Case No. 12-19089) on Aug. 3, 2012.
VERACRUZ INVESTMENTS: Case Summary & 7 Unsecured Creditors
----------------------------------------------------------
Debtor: Veracruz Investments, LLC
1625 Oakbrook Drive
Norcross, GA 30093
Type of Business: Veracruz Investments is a Georgia limited
liability company that provides investment
services.
Chapter 11 Petition Date: September 5, 2017
Case No.: 17-65621
Court: United States Bankruptcy Court
Northern District of Georgia (Atlanta)
Debtor's Counsel: David L. Bury, Jr., Esq.
STONE & BAXTER, LLP
Suite 800
Fickling & Co. Building
577 Mulberry Street
Macon, GA 31201
Tel: 478-750-9898
Fax: 478-750-9899
E-mail: dbury@stoneandbaxter.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Helio E. Bernal, operating manager.
The Debtor's list of seven unsecured creditors is available for
free at http://bankrupt.com/misc/ganb17-65621.pdf
VIASAT INC: Moody's Rates New $600MM Senior Unsecured Notes B3
--------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to ViaSat, Inc.'s
new $600 million senior unsecured notes issue. Since the proceeds
will refinance the company's existing $575 million senior unsecured
notes due June 2020, pay call premia and related fees and expenses,
the transaction is credit metric neutral and has no impact on
ViaSat's ratings (see ratings listing below). The new notes are
rated at the same B3 level as the notes they refinance, and ratings
for notes to be refinanced will be withdrawn in due course (refer
to Moody's policies on ratings withdrawals). The ratings are
contingent upon Moody's review of final documentation and no
material change in previously advised terms and conditions.
The following summarizes Moody's ratings and rating actions for
ViaSat:
Issuer: ViaSat, Inc.
Assignments:
-- Senior Unsecured Regular Bond/Debenture, assigned B3 (LGD5)
Existing Ratings and Outlook:
-- Corporate Family Rating, Unchanged at B1
-- Probability of Default Rating, Unchanged at B1-PD
-- Speculative Grade Liquidity Rating, Unchanged at SGL-2
-- Outlook, Unchanged at Positive
-- Senior Unsecured Regular Bond/Debenture, Unchanged at B3
(LGD5); (to be withdrawn)
RATINGS RATIONALE
ViaSat's B1 corporate family rating stems from uncertain growth and
return economics for its satellite broadband connectivity business,
together with modest free cash flow shortfalls and 2.75x-to-3.0x
debt/EBITDA leverage as the company's protracted investment phase
continues. Pending substantiation of the cash flow
self-sustainability of its satellite-based internet business,
ViaSat maintains solid liquidity and cash flow is supplemented by
its legacy government and commercial systems businesses, but the
company is dependent on external financing to fund technology and
capacity investments.
ViaSat has an SGL-2 speculative grade liquidity rating (indicating
good liquidity arrangements) because Moody's expects that ongoing
cash flow deficits of about $150 million per year can be funded by
company's relatively large $800 million revolving credit facility
due May 2021 (~50% of annual revenue; $800 million available at
30June17), a $387 million secured credit facility with the
Export-Import (Ex-Im) Bank of the United States ($80 million unused
at 30June17; due October 2025), and a cash balance of $160 million
at 30June17. The company has an outstanding tender offer related to
its next maturity, the 6.8% $575 million note due June 2020, and
has launched a $600 million refinance offering. Financial covenant
compliance issues are not anticipated, and the combination of
ViaSat's liquidity attributes results in liquidity being assessed
as good.
Rating Outlook
The positive outlook is based on the potential that ViaSat will
show sustained market share growth and EBITDA expansion through
2018, validating the cash flow sustainability of its satellite
services operation.
What Could Change the Rating - Up
ViaSat's CFR could be upgraded to Ba3 if ViaSat-2 is shown to be
able to pay for itself and provide a return on invested capital,
and if Moody's expected:
* Debt/EBITDA sustained below ~2.5x (2.6x at 30June17)
What Could Change the Rating - Down
ViaSat's CFR could be downgraded to B2 if Moody's expected:
* Weak technical/financial returns for satellite internet
* Softness in legacy businesses
* Sustained negative FCF/Debt (-0.1% at 30June17)
* Debt/EBITDA sustained above ~3.5x (2.6x at 30June17)
Company Profile
Headquartered in Carlsbad, California, ViaSat, Inc. (ViaSat)
operates a consumer satellite broadband internet business and is a
leading manufacturer of satellite and related
communications/networking systems for government and commercial
customers. Annual revenues are approximately $1.6 billion and
annual (Moody's adjusted) EBITDA is ~$450 million.
The principal methodology used in this rating was Global
Communications Infrastructure Rating Methodology published in June
2011.
VIASAT INC: S&P Rates New $600MM Sr. Unsecured Notes 'BB-'
----------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating and '4'
recovery rating to Carlsbad, Calif.-based satellite services and
equipment provider ViaSat Inc.'s proposed $600 million senior
unsecured notes due 2025. The company plans to use the proceeds
from the notes issuance to repay its $575 million 6.875% senior
unsecured notes due 2020. The '4' recovery rating indicates our
expectation for average (30%-50%; rounded estimate: 45%) recovery
for lenders in the event of a payment default.
S&P will withdraw the ratings on ViaSat's existing notes when they
have been redeemed.
The 'BB-' corporate credit rating and stable outlook on ViaSat
remain unchanged. For the full corporate credit rating rationale,
see our research update on ViaSat, published June 21, 2017.
VIRGIN ISLANDS PFA: S&P Puts 'CCC+' Bonds Rating on Watch Negative
------------------------------------------------------------------
S&P Global Ratings placed its 'CCC+' ratings on the Virgin Islands
Public Finance Authority's matching fund loan notes and senior- and
subordinate-lien bonds, issued for the U.S. Virgin Islands (USVI),
on CreditWatch with negative implications. S&P said, "At the same
time, we placed our 'CCC' rating on the authority's gross receipts
tax (GRT) notes on CreditWatch Negative."
"The CreditWatch placement follows USVI's indication of its intent
as of Aug. 25, 2017, to stop directly providing information to us
to support the rating on the authority's matching fund notes and
GRT loan notes," said S&P Global Ratings credit analyst Oladunni
Ososami.
S&P said, "On Aug. 16, 2017, we revised the outlook on the ratings
to negative, based on continued liquidity pressures which we
believe will need to be resolved before the end of the fiscal year
(ending Sept. 30).
"We have learned that the territory intends to no longer provide us
with the information we consider necessary to evaluate its
liquidity, including interim reports which show its monthly cash
balances," added Ms. Ososami. S&P said, "We expect to withdraw the
rating likely within the next 30 days absent sufficient
information, in our view, to reliably ascertain the territory's
liquidity and cash position, in accordance with our policies,
preceded at our discretion by a change to the rating that we
consider appropriate given available information.
"Our receipt of information on a timely basis from issuers and
obligors and their agents and advisors is essential to the
maintenance of our ratings in accordance with our applicable
criteria and policies."
WHICKER ASSET MGT: $8.3M Sale of All Assets to Clarion Approved
---------------------------------------------------------------
Judge Mark X. Mullin of the U.S. Bankruptcy Court for the Northern
District of Texas authorized Whicker Asset Management, LLC ("WAM")
and Whicker Real Estate Holdings, LLC ("WREH") to sell
substantially all assets to Clarion Technologies, Inc. for
$8,300,000.
Pursuant to the Court's Bid Procedures Order, the Debtors conducted
an auction of their Assets on Aug. 23, 2017. Clarion was the only
Qualified Bidder to participate in the auction. At the auction,
Clarion raised its bid to $8,140,000 million, which bid the Debtors
rejected at the auction in their discretion pursuant to the Bid
Procedures and the Bid Procedures Order. The Debtors closed the
auction on Aug. 23, 2017, but continued to engage in discussions
with Clarion.
The Debtors and Clarion reached an agreement for the sale of the
Assets following the conclusion of the auction. On the record at
the Sale Hearing held on Aug. 25, 2017, the Debtors reopened the
auction, Clarion submitted an increased bid in the amount of
$8,300,000, and the Debtors accepted Clarion's increased bid and
concluded the auction.
The sale is free and clear of all Interests. The Proceeds from the
Sale will be paid to the Debtors on the Closing Date or as
otherwise set forth in the Order or the Clarion APA. As soon as
reasonably practical after the Closing Date, the Debtors will pay
BOKF, N.A. from the Proceeds all amounts due and owing to BOKF.
In complete satisfaction, compromise and settlement of any and all
claims that EPC may have against the Debtors (including, but not
limited to, any and all claims related to the Breakup Fee, the EPC
APA, the Bid Procedures, and the Bid Procedures Order), the Debtors
will pay out of the Proceeds the sum of $50,000.
In complete satisfaction, compromise and settlement of any and all
claims that MBS may have against the Debtors (including, but not
limited to, any and all claims related to the MBS' engagement
agreement with the Debtors and the MBS Employment Order), the
Debtors will pay out of the Proceeds the sum of $225,000, which
amount will be paid (i) $187,500 out of the Proceeds allocated to
WAM, and (ii) $37,500 out of the Proceeds allocated to WREH. The
$225,000 in compensation to be paid to MBS is approved.
The agreement between the SBA and the Debtors described in the
Order and on the record at the Sale Hearing is approved.
Specifically:
a. the claims held by the SBA against WREH will be paid in full
from the Proceeds allocated to WREH for the sale of WREH's Assets.
The claims held by the SBA against WAM will be paid in full less
$100,000 from the Proceeds allocated to WAM for the sale of WAM’s
Assets. The $100,000 will be treated as a general unsecured claim
against the WAM Debtor, and the SBA will be entitled to its pro
rata share of payments to WAM's general unsecured creditors.
b. Whicker will pay the sum of $10,000 to the SBA within 10 days
after the closing of the Sale in full accord and satisfaction of
any and all claims held by the SBA against Whicker based upon
Whicker's guaranties of the Debtors' obligations to the SBA, and
upon receipt of such payment, the SBA will execute a full and final
release of such guarantees.
The settlement with the EPC, MS and SBA is in the best interest of
creditors and the Debtors' estates and is approved pursuant to
Federal Rule of Bankruptcy Procedure 9019.
Notwithstanding any other provision in the order or the Clarion
APA, the Taxing Authorities will receive payment of year 2016 ad
valorem real and business personal property taxes at the Sale
closing with interest that has accrued from the Petition Date
through the date of payment at the state statutory rate of interest
of 1% per month. The liens that secure all amounts ultimately owed
for year 2017 ad valorem real and business personal property taxes
will remain attached to the Assets and become the responsibility of
Clarion who will pay them in the ordinary course of business prior
to the state law delinquency date. In the event the taxes are not
timely paid, the Taxing Authorities retain all of their collection
and lien enforcement rights pursuant to Texas Law.
If any person or entity that has filed financing statements,
mortgages, mechanic's liens, lis pendens, or other documents or
agreements evidencing any Interests with respect to the Debtors or
the Assets will not have delivered to the Debtors prior to the
Closing Date, in proper form for filing and executed by the
appropriate parties, termination statements, instruments of
satisfaction, releases of all Interests which the person or entity
has with respect to the Debtors or the Assets or otherwise, then
(i) the Debtors are authorized to execute and file such statements,
instruments, releases and other documents on behalf of the person
or entity with respect to the Assets; and (ii) Clarion is
authorized to file, register, or otherwise record a certified copy
of the Order, which, once filed, registered, or otherwise recorded,
will constitute conclusive evidence of the release of all Interests
(other than Permitted Tax Liens) in the Assets of any kind or
nature whatsoever.
Notwithstanding the provisions of Bankruptcy Rules 6004(h), there
is no stay pursuant to Bankruptcy Rule 6004(h) and the Order will
be effective and enforceable immediately upon entry.
A copy of the Clarion APA attached to the Order is available for
free at:
http://bankrupt.com/misc/Whicker_Asset_178_Order.pdf
The Purchaser:
CLARION RECHNOLOGIES, INC.
170 College Ave., suite 800
Holland, MI 49423
Attn: John Brownlow, President
E-mail: jbrownlow@clariontechnologies.com
The Purchaser is represented by:
Michael G. Wooldridge, Esq.
Robert D. Mollhagen, Esq.
VARNUM LLP
333 Bridge St. NW, Suite 1700
Grand Rapids, MI 49501
E-mail: mgwooldridge@varnumlaw.com
rdmollhagen@varnumlaw.com
About Whicker Asset Management
Whicker Asset Management, LLC, and Whicker Real Estate Holdings,
LLC, operate under the name GTM Plastics. GTM is a manufacturer of
thermoplastic injection molding parts with capabilities for
secondary operations in assembly, hot plate and sonic welding, pad
printing and hot stamping. For over 50 years, GTM has been
producing quality plastic products for various different
industries, including the automotive industry, HVAC, medical field
and sports industries. GTM's reputation for providing quality
products and exceptional customer service has made it an industry
leader and landed it on Inc. 5000's fastest growing companies
multiple years in a row.
Whicker Asset Management, LLC, and Whicker Real Estate Holdings,
LLC, both based in Garland, Texas, filed Chapter 11 petitions
(Bankr. N.D. Tex. Lead Case No. 17-30584) on Feb. 15, 2017. The
petitions were signed by Richard C. Whicker, president.
Whicker Asset Management estimated $1 million to $10 million in
both assets and liabilities as of the bankruptcy filing.
The Debtors tapped Melanie P. Goolsby, Esq., and Jason Patrick
Kathman, Esq., at Pronske Goolsby & Kathman, P.C., as bankruptcy
counsel. The Debtors also hired Glenn Cato of CFO Advisory as
chief financial officer and financial advisor; and Molding Business
Services, Inc., as broker.
The Official Committee of Unsecured Creditors, which was formed on
March 6, 2017, has retained Neal, Gerber & Eisenberg LLP as
counsel, and Loewinsohn Flegle Deary Simon LLP as co-counsel.
YOSI SAMRA: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Yosi Samra, Inc.
530 7th Avenue, Floor M1
New York, NY 10018
Type of Business: Yosi Samra is a designer brand footwear for
women and kids famous for its fold-up ballet
flats. Yosi Samra's runway-inspired styles have
been featured in Vogue, InStyle and Glamour
Magazines and spotted on some of fashion's most
trend-setting celebrities, including Sarah
Jessica Parker, Anne Hathaway, and Halle Berry.
The Yosi Samra brand is available in over 1,000
boutiques across the US and in 85 other
countries, including 15 brand shops in Asia and
The Middle East.
Web site: https://www.yosisamra.com
Chapter 11 Petition Date: September 5, 2017
Case No.: 17-12493
Court: United States Bankruptcy Court
Southern District of New York (Manhattan)
Debtor's Counsel: Vincent J. Roldan, Esq.
BALLON STOLL BADER & NADLER P.C.
729 Seventh Avenue, 17th Floor
New York, NY 10019
Tel: 212-575-7900
Fax: 212-764-5060
E-mail: vroldan@ballonstoll.com
Estimated Assets: $1 million to $10 million
Estimated Liabilities: $1 million to $10 million
The petition was signed by Larry Reines, president.
The Debtor's list of 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/nysb17-12493.pdf
[*] Court Denies PwC's Bid to Stay $2-Bil. Suit Over Mortgage Fraud
-------------------------------------------------------------------
Rick Archer, writing for Bankruptcy Law360, reports that Alabama
District Court Judge Barbara Rothstein has denied
PricewaterhouseCoopers LLP's motion to stay the Sept. 18 start of
the trial of a bank and auditor Crowe Horwath LLP and certify an
appeal of the Aug. 18 rejection of PwC's defense. Law360 relates
that Judge Rothstein said she won't pause the $2 billion lawsuit
that alleges PwC overlooked a mortgage fraud scheme that brought
down the bank while the auditor appeals the court's rejection of
its attempt to shift the blame to federal regulators.
[^] Recent Small-Dollar & Individual Chapter 11 Filings
-------------------------------------------------------
In re Duane Alan Mills and Kris Heidenreich Mills
Bankr. S.D.W. Va. Case No. 17-20447
Chapter 11 Petition filed August 28, 2017
Filed Pro Se
In re Chunduri V. Chelapati
Bankr. C.D. Cal. Case No. 17-13456
Chapter 11 Petition filed August 29, 2017
represented by: James D. Hornbuckle, Esq.
CORNERSTONE LAW CORPORATION
E-mail: jdh@cornerstonelawcorp.com
In re Jimmy Lee Scoggins
Bankr. E.D. Cal. Case No. 17-25727
Chapter 11 Petition filed August 29, 2017
represented by: Mikalah R. Liviakis, Esq.
In re Salimar, Inc.
Bankr. E.D. Cal. Case No. 17-13325
Chapter 11 Petition filed August 29, 2017
See http://bankrupt.com/misc/caeb17-13325.pdf
represented by: Phillip W. Gillet, Jr., Esq.
E-mail: lawyer@bak.rr.com
In re Brickell Tequesta LLC
Bankr. S.D. Fla. Case No. 17-20899
Chapter 11 Petition filed August 29, 2017
See http://bankrupt.com/misc/flsb17-20899.pdf
Filed Pro Se
In re Krumbein Construction, LLC
Bankr. S.D. Fla. Case No. 17-20935
Chapter 11 Petition filed August 29, 2017
See http://bankrupt.com/misc/flsb17-20935.pdf
represented by: David C. Rubin, Esq.
E-mail: david3051@aol.com
In re Bridan 770, LLC
Bankr. S.D. Fla. Case No. 17-20940
Chapter 11 Petition filed August 29, 2017
See http://bankrupt.com/misc/flsb17-20940.pdf
represented by: Joel M. Aresty, Esq.
E-mail: aresty@mac.com
In re BK Enterprises Inc.
Bankr. D. Mass. Case No. 17-13197
Chapter 11 Petition filed August 29, 2017
See http://bankrupt.com/misc/mab17-13197.pdf
represented by: Carmenelisa Perez-Kudzma, Esq.
PEREZ-KUDZMA LAW OFFICE
E-mail: carmenelisa@pklolaw.com
In re Michigan Honey Bees, L.L.C.
Bankr. E.D. Mich. Case No. 17-52215
Chapter 11 Petition filed August 29, 2017
See http://bankrupt.com/misc/mieb17-52115.pdf
represented by: Edward J. Gudeman, Esq.
GUDEMAN & ASSOCIATES, P.C.
E-mail: ejgudeman@gudemanlaw.com
In re Emporium At Schroon Lake, Inc.
Bankr. N.D.N.Y. Case No. 17-11594
Chapter 11 Petition filed August 29, 2017
See http://bankrupt.com/misc/nynb17-11594.pdf
represented by: Michael Leo Boyle, Esq.
TULLY RINCKEY PLLC
E-mail: mboyle@tullylegal.com
In re Nancy Jane Hertzfeld
Bankr. S.D.N.Y. Case No. 17-12388
Chapter 11 Petition filed August 29, 2017
represented by: Mark A. Frankel, Esq.
BACKENROTH FRANKEL & KRINSKY, LLP
E-mail: mfrankel@bfklaw.com
In re Nosson R. Sklar
Bankr. S.D.N.Y. Case No. 17-12394
Chapter 11 Petition filed August 29, 2017
Filed Pro Se
In re Charles Edward Kirby, Jr. and Patricia Gail KirbY
Bankr. M.D. Tenn. Case No. 17-05868
Chapter 11 Petition filed August 29, 2017
represented by: Steven L. Lefkovitz, Esq.
LAW OFFICES LEFKOVITZ & LEFKOVITZ
E-mail: slefkovitz@lefkovitz.com
In re C&G'S MOUNTAIN MUSIC, LLC
Bankr. M.D. Tenn. Case No. 17-05869
Chapter 11 Petition filed August 29, 2017
See http://bankrupt.com/misc/tnmb17-05869.pdf
represented by: Steven L. Lefkovitz, Esq.
LAW OFFICES LEFKOVITZ & LEFKOVITZ
E-mail: slefkovitz@lefkovitz.com
In re Azim Feda
Bankr. E.D. Va. Case No. 17-12931
Chapter 11 Petition filed August 29, 2017
Filed Pro Se
In re Catherine M. Haretakis
Bankr. C.D. Cal. Case No. 17-13482
Chapter 11 Petition filed August 30, 2017
represented by: Donald W. Sieveke, Esq.
E-mail: ibmoola@yahoo.com
In re W. Rafer Leach
Bankr. D. Colo. Case No. 17-18112
Chapter 11 Petition filed August 30, 2017
represented by: Joshua Sheade, Esq.
E-mail: joshua.sheade@gmail.com
In re Patria Baez and Percido Lara
Bankr. D. Mass. Case No. 17-13232
Chapter 11 Petition filed August 30, 2017
represented by: John A. Ullian, Esq.
LAW OFFICES OF ULLIAN & ASSOC.
E-mail: john@ullianlaw.com
In re Tilda Marie Brisson Sutton
Bankr. E.D.N.C. Case No. 17-04225
Chapter 11 Petition filed August 30, 2017
represented by: Trawick H Stubbs, Jr., Esq.
STUBBS & PERDUE, P.A.
E-mail: efile@stubbsperdue.com
In re Mohammad Altaful Huq
Bankr. D.N.J. Case No. 17-27607
Chapter 11 Petition filed August 30, 2017
represented by: Robert M. Rich, Esq.
E-mail: rrlaw@aol.com
In re Nina Y. Shapir
Bankr. E.D.N.Y. Case No. 17-44513
Chapter 11 Petition filed August 30, 2017
represented by: Alla Kachan, Esq.
E-mail: alla@kachanlaw.com
In re Michael C. Finnegan, Sr.
Bankr. S.D.N.Y. Case No. 17-36469
Chapter 11 Petition filed August 30, 2017
represented by: Francis J. O'Reilly, Esq.
E-mail: foreilly@verizon.net
In re Mark A. Suchevits
Bankr. W.D. Pa. Case No. 17-23481
Chapter 11 Petition filed August 30, 2017
represented by: Donald R. Calaiaro, Esq.
CALAIARO VALENCIK
E-mail: dcalaiaro@c-vlaw.com
In re FX Fashion No 2 Inc.
Bankr. N.D. Tex. Case No. 17-33266
Chapter 11 Petition filed August 30, 2017
See http://bankrupt.com/misc/txnb17-33266.pdf
represented by: Joyce W. Lindauer, Esq.
JOYCE W. LINDAUER ATTORNEY, PLLC
E-mail: joyce@joycelindauer.com
In re Stephen D. Harm
Bankr. W.D. Wis. Case No. 17-13034
Chapter 11 Petition filed August 30, 2017
represented by: Galen W. Pittman, Esq.
PITTMAN & PITTMAN LAW OFFICES, LLC
E-mail: galen@pittmanandpittman.com
In re GeoMedia Acquisition A Corp
Bankr. C.D. Cal. Case No. 17-13501
Chapter 11 Petition filed August 31, 2017
See http://bankrupt.com/misc/cacb17-13501.pdf
Filed Pro Se
In re Flem Earl McMillan and Lydia Ventura McMillan
Bankr. C.D. Cal. Case No. 17-17312
Chapter 11 Petition filed August 31, 2017
represented by: Todd L. Turoci, Esq.
THE TUROCI FIRM
E-mail: mail@theturocifirm.com
In re Patricia A. Gill
Bankr. N.D. Cal. Case No. 17-30885
Chapter 11 Petition filed August 31, 2017
represented by: Lawrence A. Jacobson, Esq.
LAW OFFICES OF COHEN AND JACOBSON
E-mail: laj@jacobsonattorneys.com
In re Johnny Chimpo II, LLC
Bankr. M.D. Fla. Case No. 17-07764
Chapter 11 Petition filed August 31, 2017
See http://bankrupt.com/misc/flmb17-07764.pdf
represented by: Jake C. Blanchard, Esq.
BLANCHARD LAW, PA
E-mail: jake@jakeblanchardlaw.com
In re SRQ Taxi Management, LLC
Bankr. M.D. Fla. Case No. 17-07782
Chapter 11 Petition filed August 31, 2017
See http://bankrupt.com/misc/flmb17-07782.pdf
represented by: David S. Jennis, Esq.
JENNIS LAW FIRM
E-mail: ecf@jennislaw.com
In re Brenda Diana Nestor
Bankr. S.D. Fla. Case No. 17-21187
Chapter 11 Petition filed August 31, 2017
represented by: Joann M. Hennessey, Esq.
E-mail: joann@cjapl.com
In re Stinson A. Troutman
Bankr. M.D. Ga. Case No. 17-51876
Chapter 11 Petition filed August 31, 2017
represented by: Wesley J. Boyer, Esq.
BOYER LAW FIRM, L.L.C.
E-mail: wjboyer_2000@yahoo.com
In re BCW Express Delivery, Inc.
Bankr. E.D. Mich. Case No. 17-52368
Chapter 11 Petition filed August 31, 2017
See http://bankrupt.com/misc/mieb17-52368.pdf
represented by: Edward J. Gudeman, Esq.
GUDEMAN & ASSOCIATES, P.C.
E-mail: ejgudeman@gudemanlaw.com
In re Firehouse Ribs, LLC
Bankr. D.N.D. Case No. 17-30540
Chapter 11 Petition filed August 31, 2017
See http://bankrupt.com/misc/ndb17-30540.pdf
Filed Pro Se
In re Daniela Maria Rosa
Bankr. D.N.J. Case No. 17-27826
Chapter 11 Petition filed August 31, 2017
represented by: Andy Winchell, Esq.
LAW OFFICES OF ANDY WINCHELL PC
E-mail: andy@winchlaw.com
In re JLC Daycare, Inc.
Bankr. W.D. Pa. Case No. 17-23517
Chapter 11 Petition filed August 31, 2017
See http://bankrupt.com/misc/pawb17-23517.pdf
represented by: Michael J. Henny, Esq.
LAW OFFICES OF MICHAEL J. HENNY
E-mail: m.henny@hennylaw.com
In re Steve Patterson LLC
Bankr. W.D. Pa. Case No. 17-23520
Chapter 11 Petition filed August 31, 2017
See http://bankrupt.com/misc/pawb17-23520.pdf
represented by: Robert O Lampl, Esq.
E-mail: rol@lampllaw.com
In re Valhalla Mining Co. LLC
Bankr. W.D. Pa. Case No. 17-23523
Chapter 11 Petition filed August 31, 2017
See http://bankrupt.com/misc/pawb17-23523.pdf
represented by: Robert O Lampl, Esq.
E-mail: rol@lampllaw.com
In re Lifestat Ambulance Service, Inc.
Bankr. W.D. Pa. Case No. 17-70646
Chapter 11 Petition filed August 31, 2017
See http://bankrupt.com/misc/pawb17-70646.pdf
represented by: Christopher M. Frye, Esq.
STEIDL & STEINBERG
E-mail: chris.frye@steidl-steinberg.com
In re Carrie Ann Morris
Bankr. E.D. Tex. Case No. 17-41879
Chapter 11 Petition filed August 31, 2017
represented by: Robert T. DeMarco, Esq.
DEMARCO-MITCHELL, PLLC
E-mail: robert@demarcomitchell.com
In re MPH2, LLC
Bankr. S.D. Ala. Case No. 17-03319
Chapter 11 Petition filed September 1, 2017
See http://bankrupt.com/misc/alsb17-03319.pdf
represented by: Alexandra K. Garrett, Esq.
SILVER, VOIT & THOMPSON
E-mail: agarrett@silvervoit.com
In re Hugh David Coherd
Bankr. N.D. Ga. Case No. 17-65303
Chapter 11 Petition filed September 1, 2017
represented by: M. Denise Dotson, Esq.
M. DENISE DOTSON, LLC
E-mail: ddotsonlaw@me.com
In re Furniture Marketing Direct, LLC
Bankr. N.D. Ga. Case No. 17-65370
Chapter 11 Petition filed September 1, 2017
See http://bankrupt.com/misc/ganb17-65370.pdf
represented by: Edward F. Danowitz, Esq.
DANOWITZ LEGAL, P.C.
E-mail: edanowitz@danowitzlegal.com
In re Titan ATL Consultants LLC
Bankr. N.D. Ga. Case No. 17-65391
Chapter 11 Petition filed September 1, 2017
See http://bankrupt.com/misc/ganb17-65391.pdf
Filed Pro Se
In re E.B. Weaver Family LP
Bankr. S.D. Ga. Case No. 17-60380
Chapter 11 Petition filed September 1, 2017
See http://bankrupt.com/misc/gasb17-60380.pdf
Filed Pro Se
In re SunKim Marketing LLC
Bankr. E.D. Mich. Case No. 17-32013
Chapter 11 Petition filed September 1, 2017
See http://bankrupt.com/misc/mieb17-32013.pdf
represented by: George E. Jacobs, Esq.
BANKRUPTCY LAW OFFICES
E-mail: george@bklawoffice.com
In re Capriccio by the Sea, LLC
Bankr. D.N.J. Case No. 17-27978
Chapter 11 Petition filed September 1, 2017
See http://bankrupt.com/misc/njb17-27978.pdf
represented by: Timothy P. Neumann, Esq.
BROEGE, NEUMANN, FISCHER & SHAVER
E-mail: timothy.neumann25@gmail.com
In re Victor P. Kearney
Bankr. D.N.M. Case No. 17-12274
Chapter 11 Petition filed September 1, 2017
represented by: Jason Michael Cline, Esq.
JASON CLINE, LLC
E-mail: jason@attorneyjasoncline.com
In re Michael J. Pareti
Bankr. S.D.N.Y. Case No. 17-23358
Chapter 11 Petition filed September 1, 2017
represented by: James B. Glucksman, Esq.
RATTET PLLC
E-mail: jbglucksman@rattetlaw.com
In re WWLC Investment, L.P.
Bankr. E.D. Tex. Case No. 17-41913
Chapter 11 Petition filed September 1, 2017
See http://bankrupt.com/misc/txeb17-41913.pdf
represented by: John Paul Stanford, Esq.
QUILLING, SELANDER, LOWNDS, ET AL
E-mail: jstanford@qslwm.com
In re TW Towing Company, Inc.
Bankr. E.D. Tex. Case No. 17-41933
Chapter 11 Petition filed September 1, 2017
See http://bankrupt.com/misc/txeb17-41933.pdf
represented by: Eric A. Liepins, Esq.
ERIC A. LIEPINS P.C.
E-mail: eric@ealpc.com
In re Malinowski Family Trust
Bankr. S.D. Tex. Case No. 17-35189
Chapter 11 Petition filed September 1, 2017
See http://bankrupt.com/misc/txsb17-35189.pdf
represented by: Daniel C Keele, Esq.
KEELE & ASSOC
E-mail: dckeele@sbcglobal.net
In re Emeferran, Inc.
Bankr. S.D. Tex. Case No. 17-70341
Chapter 11 Petition filed September 1, 2017
See http://bankrupt.com/misc/txsb17-70341.pdf
represented by: Ronald Julius Smeberg, Esq.
THE SMEBERG LAW FIRM PLLC
E-mail: ron@smeberg.com
In re The Acosta Group, LLC
Bankr. W.D. Tex. Case No. 17-31416
Chapter 11 Petition filed September 1, 2017
See http://bankrupt.com/misc/txwb17-31416.pdf
represented by: E. P. Bud Kirk, Esq.
E-mail: budkirk@aol.com
In re Fady Abdo El-Bahri
Bankr. M.D. Fla. Case No. 17-03265
Chapter 11 Petition filed September 4, 2017
represented by: Jason A Burgess, Esq.
THE LAW OFFICES OF JASON A. BURGESS, LLC
E-mail: jason@jasonaburgess.com
*********
Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable. Those sources may not,
however, be complete or accurate. The Monday Bond Pricing table
is compiled on the Friday prior to publication. Prices reported
are not intended to reflect actual trades. Prices for actual
trades are probably different. Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind. It is likely that some entity
affiliated with a TCR editor holds some position in the issuers
public debt and equity securities about which we report.
Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets. At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
On Thursdays, the TCR delivers a list of recently filed
Chapter 11 cases involving less than $1,000,000 in assets and
liabilities delivered to nation's bankruptcy courts. The list
includes links to freely downloadable images of these small-dollar
petitions in Acrobat PDF format.
Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals. All titles are
available at your local bookstore or through Amazon.com. Go to
http://www.bankrupt.com/books/to order any title today.
Monthly Operating Reports are summarized in every Saturday edition
of the TCR.
The Sunday TCR delivers securitization rating news from the week
then-ending.
TCR subscribers have free access to our on-line news archive.
Point your Web browser to http://TCRresources.bankrupt.com/and use
the e-mail address to which your TCR is delivered to login.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman,
Editors.
Copyright 2017. All rights reserved. ISSN: 1520-9474.
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